Moody’s Investors Service has affirmed the ratings of Yes Bank and maintained a stable outlook.
“Yes Bank’s profitability is strong, and Moody’s expects that the bank can maintain low credit costs over the next 12-18 months,” the ratings agency said on Thursday.
On Wednesday, Yes Bank had said the RBI had extended its MD & CEO Rana Kapoor’s term only till January 2019, compared to three-year term approved by the board. Moody’s added that while the bank’s asset quality metrics were superior to that of peers, its aggressive growth strategy poses asset risks.Moody’s expects that the bank’s loan growth, at 35%-40% annually, will continue to outpace the industry average of about 10% in 12-18 months.
