Archive · 23 Jul 2025
Yes Bank Delays MFI Acquisition Amid Industry Concerns
Yes Bank, a bank, has decided to hold off on buying a smaller bank that gives out small loans (MFI).
This is because the industry that these smaller banks operate in is currently facing some problems.
The main reason is because people who borrow money are having difficulty repaying loans.
The total amount of money these smaller banks manage has decreased, and the percentage of loans at risk of not being paid back has increased.
Yes Bank had planned to buy one of these banks to meet some rules, but the bank's priorities have changed.
Yes Bank has postponed plans to acquire a microfinance institution (MFI).
The decision is due to broader challenges within the MFI industry.
Yes Bank initially planned to acquire an MFI in 2022 to meet priority sector lending norms.
MFI industry's assets under management (AUM) decreased 12% year-over-year.
Portfolio at risk (PAR 31-180 days) in MFIs rose to 6.2% as of March 2025.
- Who
- Yes Bank, a private sector lender, is the primary entity involved.
- What
- Yes Bank is putting its plan to acquire a microfinance institution on hold.
- When
- The decision was made recently, as of the report published on July 23, 2025.
- Where
- The article does not specify a location.
- Why
- Due to the challenges and stress within the MFI industry.
Yes Bank Perspective
MFI Industry Perspective
Strategic Shift
Yes Bank Perspective
Focus on profitable segments.
MFI Industry Perspective
N/A
- Yes Bank CEO
- Prashant Kumar
- Net Advances (YoY)
- 5%
- Deposits (YoY)
- 4%
- Commercial Banking Loans (YoY)
- 19%
- MFI AUM Decrease (YoY)
- 12%
- PAR 31-180 Days (March 2025)
- 6.2%