Archive · 23 Jul 2025
Yes Bank Postpones MFI Acquisition Amid Industry Woes
Yes Bank, a bank, has paused its plan to buy a microfinance company (MFI).
They wanted to do this to meet certain lending rules and make more money.
The MFI industry is facing some problems right now.
This is because people who borrow from MFIs are having trouble paying back their loans.
This has caused the value of the loans to go down.
So, Yes Bank decided to wait before buying an MFI because the industry isn't doing so well.
Yes Bank postponed its plan to acquire a microfinance institution (MFI).
The decision was made due to industry stress.
Yes Bank previously intended to acquire an MFI to meet priority sector lending norms and enter high-margin business.
The MFI industry experienced a 12% year-over-year decrease in assets under management (AUM) as of March 2025.
Portfolio at risk (PAR 31-180 days) in the MFI sector rose to 6.2% as of March 2025.
- Who
- Yes Bank.
- What
- Yes Bank put on hold the plan to acquire a microfinance institution.
- When
- As of July 23, 2025.
- Where
- N/A
- Why
- Due to broader stress in the microfinance industry.
Yes Bank
Microfinance Industry
Acquisition Strategy
Yes Bank
Yes Bank has halted the acquisition of MFI due to current industry difficulties.
Microfinance Industry
N/A
- Yes Bank CEO
- Prashant Kumar
- Net Advances (YoY)
- 5%
- Deposits (YoY)
- 4%
- Commercial Banking Loans (YoY)
- 19%
- MFI AUM Decline (YoY)
- 12%
- MFI PAR 31-180
- 6.2%