According to people familiar with the plans, the private lender has appointed arrangers for a benchmark-sized dollar bond and is beginning investor calls on Monday. The exact amount and pricing have not been stated. Yes Bank did not immediately respond to an emailed request for comment.

The return follows a difficult chapter in March 2020, when Yes Bank permanently cancelled its Additional Tier 1 debt. AT1 instruments count towards a bank’s capital and can absorb losses through a write-off when specified conditions are triggered. Authorities took control of the lender, followed by a rescue involving several institutions led by State Bank of India.

The bank’s position has since improved. In 2025, the banking arm of Sumitomo Mitsui Financial Group acquired about 25 per cent, becoming its largest shareholder. Citing stronger earnings, Crisil upgraded Yes Bank’s rupee infrastructure bonds and Basel III Tier 2 instruments from AA- to AA+ in August. Those instruments carried an A- rating at the beginning of 2023.

Moody’s has assigned Ba1 to the proposed dollar bond, while S&P has rated it BB+; both sit one level below investment grade. Other Indian lenders raised $5.27 billion over two months after RBI introduced June measures aimed at attracting capital inflows and supporting the rupee.