Yes Bank shares jump 7% after an outlook upgrade from Moody's

Ratings agency Moody's Ratings affirmed private lender Yes Bank Ltd.'s long-term foreign currency and local currency deposit rating, its long-term foreign currency issuer rating at Ba3. However, it raised its outlook to positive, from stable.The ratings agency wrote that the change in its outlook is a reflection of their expectations of a gradual improvement in the lender's fortunes.An improvement in deposits and lending franchise will also improve Yes Bank's profitability over the next 12-18 months, the ratings agency said in its note.Moody's also said that it may also end up upgrading the rating of Yes Bank if it manages to sustain its core profitability with stable asset quality.Yes Bank reported a decline in deposit growth on a sequential basis for the first time in eight quarters. Deposits for the June quarter stood at ₹2.64 lakh crore and was up 21% year-on-year.However, the lender's loan growth was below industry levels but the best in 21 quarters when compared on a year-on-year basis.Yes Bank's advances for the June quarter grew by 14.8% from last year and 0.9% from the March quarter. Liquidity Coverage Ratio for the June quarter stood at 137.8% from 127% year-on-year.Shares of Yes Bank are trading 7.1% higher in early trade on Wednesday at ₹26.73. The stock is nearing its recent 52-week high at ₹32.85. Shares have risen 45% so far in the last 12 months.