Yes Bank

Yes Bank reported a 18.3% year-on-year rise in net profit for the second quarter of FY2024–25, reaching Rs. 654 crore, driven by strong growth in retail and SME lending, improved fee-based income, and disciplined cost management. The private sector lender maintained robust asset quality and strengthened provisioning buffers, reflecting prudent risk management. Analysts highlight that digital initiatives and expanding customer engagement contributed to operational efficiency, supporting profitability.

State Bank of India (SBI) has divested a significant portion of its stake in Yes Bank, raising Rs. 8,889 crore through a strategic transaction with Japan’s Sumitomo Mitsui Banking Corporation (SMBC). The move underscores SBI’s ongoing efforts to streamline its portfolio, unlock value, and maintain a sharper focus on its core operations. For SMBC, the investment highlights growing foreign institutional interest in India’s banking sector, particularly in private lenders undergoing turnaround strategies.

Sumitomo Mitsui Banking Corporation (SMBC), one of Japan’s leading financial institutions, has finalized the acquisition of a 20% equity stake in Yes Bank. The move marks a significant step in deepening bilateral financial cooperation between India and Japan while strengthening Yes Bank’s capital base and growth prospects. The strategic partnership is expected to provide Yes Bank with enhanced global expertise, improved governance standards, and greater access to international markets, while SMBC gains a stronger foothold in one of the world’s fastest-growing banking sectors.

In a landmark development in India’s banking sector, the State Bank of India (SBI) has sold a 13.18% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for Rs. 8,889 crore. The divestment, executed at Rs. 21.50 per share, transfers 413.44 crore shares to SMBC, which now emerges as the single-largest shareholder in Yes Bank. With this move, SBI trims its holding to 10.8%, signaling a strategic shift away from its earlier rescue role in the private lender.

The Reserve Bank of India (RBI) has formally approved significant board changes at Yes Bank, signaling renewed regulatory confidence in the lender’s governance framework. The approvals include appointments and reappointments of key directors and executives aimed at reinforcing strategic oversight, risk management, and financial stability. This development comes at a crucial time as the bank continues its post-recapitalization growth trajectory, balancing asset quality improvement with expansion objectives.

The Reserve Bank of India (RBI) has approved the reappointment of R. Gandhi as non-executive part-time chairman of Yes Bank, reinforcing continuity in the lender’s governance framework. Gandhi, a former deputy governor of the central bank, has been a critical figure in stabilizing the bank’s board and guiding it through regulatory reforms. His renewed term reflects RBI’s confidence in his stewardship, particularly at a time when the financial sector faces heightened scrutiny.

Shares of Yes Bank are expected to attract investor attention on Monday amid fresh developments influencing market sentiment. Analysts point to strategic moves by the bank, regulatory updates, and shifts in investor positioning as primary factors driving potential volatility. The stock’s performance is under scrutiny as both retail and institutional investors evaluate recent financial disclosures, capital-raising initiatives, and broader banking sector trends.

Anil Ambani, the once-prominent industrialist and chairman of Reliance ADA Group, has been summoned by a Mumbai court in connection with an alleged loan fraud case involving more than Rs. 150 crore. The case, tied to one of his group’s companies, is under investigation for suspected financial misrepresentation and diversion of funds obtained from a public sector bank. This summons represents a significant development in India’s growing crackdown on corporate financial improprieties, particularly among high-profile borrowers.

Yes Bank has delivered a strong performance in the first quarter of FY25, posting a 59% year-on-year increase in net profit, reaching Rs. 391 crore. The growth was primarily supported by higher net interest income and reduced provisioning costs. As the bank continues its post-restructuring trajectory, improvements in asset quality and loan growth have bolstered investor confidence. Operating metrics also reflected positive momentum, with steady deposit accretion, credit expansion, and enhanced cost controls.

Yes Bank received a significant confidence boost from Moody’s Ratings on Friday, as the global credit agency upgraded its long-term foreign and local currency bank deposit ratings from Ba3 to Ba2. The move reflects a steady enhancement in the bank’s credit fundamentals, including improved capital buffers, higher loan loss reserves, and better asset quality metrics. The bank’s gross non-performing loan ratio dropped sharply to 1.6% by March 2025, while its provision coverage rose to 80%.