Yes Bank Ltd’s shares jumped over 10 per cent, hitting a 52-week high level of Rs 16 apiece on Thursday’s opening deals after rating agency CARE upgraded the bank’s ratings assigned to its debt instruments such as Infrastructure Bonds, Tier II Bonds, among others.

In the rating upgrade, CARE said that “the revision in ratings assigned to the debt instruments of Yes Bank factors in the bank’s continued demonstration of stabilisation of operations and growth in business, i.e. advances as well as deposits, with strong growth in CASA deposits and continued improvement in profitability during 9MFY22 with stable asset quality parameters amidst concerns over Covid-19 related stress.”

Further, the ratings continue to factor in the improvement in the credit profile of the bank post the implementation of the reconstruction scheme for the bank and the subsequent capital raise through Follow on Public Offer (FPO) in July 2020, which has improved the capitalisation level of the bank increasing its ability to absorb asset quality shocks as well as provide growth capital.

“The bank expects recovery to be higher than the expected slippages in the near term, however, the proportion of stressed advances to the net worth remained relatively higher for the bank and higher than expected slippages may further impact the financial risk profile of the bank and would continue to remain a key monitorable,” CARE Ratings added.