Rating agency ICRA has downgraded YES Bank's debt instruments worth Rs 52,611.70 crore to ‘[ICRA] D' after the cash-strapped lender was placed under a 30-day moratorium by the Reserve Bank of India. As per ICRA's classification, instruments with this rating are in default or are expected to be in default soon.

Care Ratings announced revision in ratings assigned to the various debt instruments of Yes Bank worth Rs 20,716.60 crore. The ratings have been put on ‘Credit Watch with Developing Implications' and CARE would continue to monitor the progress on the reconstruction scheme and would periodically review the ratings and take appropriate action.

India Ratings and Research (Ind-Ra) has downgraded Yes Bank's Long-Term Issuer Rating to ‘IND BB-' from ‘IND A-' while maintaining the Rating Watch Negative (RWN).

Moody's Investors Service has downgraded Yes Bank's long-term foreign currency issuer rating to Caa3 from B2. The ratings remain under review, with the direction uncertain. Moody's has also downgraded the bank's long-term foreign and local currency bank deposit ratings to Caa1 from B2, and its foreign currency senior unsecured MTN program rating to (P)Caa3 from (P)B2. The ratings remain under review, with the direction uncertain.In addition, Moody's has downgraded the bank's long-term domestic and foreign currency Counterparty Risk Rating (CRR) and long-term Counterparty Risk Assessment (CR Assessment) to Caa1 from B1 and Caa1(cr) from B1(cr) respectively. The ratings remain under review, with the direction uncertain.At the same time, Moody's has downgraded Yes Bank's Baseline Credit Assessment (BCA) and adjusted BCA to ca from caa2.

Brickwork Ratings downgraded ratings of various bond issues of Yes Bank worth Rs 1330 crore to ‘BWR D'. As per Brickwork Ratings' classification, instruments with this rating are in default or are expected to be in default soon.

This fresh slew of rating downgrade comes after the Yes Bank was placed under a "moratorium" on late Thursday (5 March 2020), with the Reserve Bank of India (RBI) capping depositor withdrawals at Rs 50,000 per account for a month and superseding the board with immediate effect. It appointed Prashant Kumar as the administrator of the bank. The administrator is vested with powers, functions and duties of the board of directors of the bank.

RBI said that the financial position of Yes Bank has undergone a steady decline largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits. The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank.

The country's central bank assured the depositors of the bank that their interest will be fully protected and there is no need to panic. RBI said it will explore and draw up a scheme in the next few days for the bank's reconstruction or amalgamation and with the approval of the central government, put the same in place well before the period of moratorium of thirty days ends so that the depositors are not put to hardship for a long period of time, it added.

Accordingly, on Friday (6 March) evening, released the draft of Scheme of Reconstruction of Yes Bank and has invited suggestions and comments up to Monday, 9 March 2020.

The scheme called 'Yes bank Reconstruction Scheme, 2020' shall come into force on such date (appointed date) as the Central Government may, by notification in the Official Gazette, specify.

As per the draft scheme, Yes Bank has 255 crore shares of Rs 2 per share. State Bank of India (SBI) will be issued 245 crore shares at a price of Rs 10 per share for Rs 2450 crore. This will be 49% of the share capital of the reconstructed bank.

SBI shall not reduce its holding below 26% before completion of three years from the date of infusion of the capital. The new board shall stand constituted from the appointed date. lt will consist of CEO and MD, non executive chairman, non executive directors.

SBI shall have nominee directors appointed on the board of the reconstructed bank. RBI may appoint additional directors to the board. The members of the board so appointed shall continue in office for a period of one year, or until an alternate board is constituted by Yes Bank.

All the deposits with and liabilities of the reconstructed bank will continue in the same manner. The instruments qualifying as Additional Tier 1 capital shall stand written down permanently, in full.

All the employees of the reconstructed bank shall continue in its service with the same remuneration and on the same terms and conditions of service (T&C), at least for a period of one year. Board of directors of the reconstructed bank will however, have the freedom to discontinue the services of the Key Managerial Personnel (KMPs) at any point of time after following the due procedure.

The offices and branches of the reconstructed bank shall continue to function in the same manner. Reconstructed bank can open new offices and branches or close down existing offices or branches.

Shares of Yes Bank surged 32.10% to 21.40. The stock hit a high of Rs 21.50 and a low of Rs 16.20 so far during the day.

On the BSE, 3.97 crore shares were traded in the counter so far compared with average daily volumes of 2.16 crore shares in the past two weeks.

Yes Bank has presence covering 53 metros, 29 states and 7 Union Territories. The bank with 1120 branches, 1456 ATMs across the nation has an employee head count of 21,136 as of 31-March 2019.