Archive · 24 Jul 2025
Yes Bank Eyes Growth after SMBC Investment
Yes Bank is now in a new phase after a big investment from SMBC, a Japanese bank.
This investment is a big deal because it helps Yes Bank get a better rating, which means they can borrow money more cheaply and attract more business customers.
Yes Bank wants to reach a rating of AA and improve services.
They plan to work with SMBC to offer more services to big companies, which can bring in more money.
They also aim to earn a 1% return on all their assets by 2026.
They're being careful with loans that don't require collateral, and they have a plan to get back money from past loans.
SMBC's 20% stake in Yes Bank marks the end of reconstruction.
The bank aims for an AA rating to reduce funding costs and attract new clients.
Yes Bank expects to offer transaction banking and digital solutions with SMBC's support.
The bank is targeting a 1% return on assets (ROA) in fiscal year 2026.
Unsecured loans constitute less than 7% of the total, with recovery targets set.
- Who
- Yes Bank and Sumitomo Mitsui Banking Corporation (SMBC).
- What
- Sumitomo Mitsui Banking Corporation acquired a 20% stake in Yes Bank.
- When
- Fiscal year 2026 is the target year.
- Where
- India
- Why
- To finalize Yes Bank's reconstruction and facilitate strategic improvements.
Yes Bank Strategy
No opposing view found.
Growth Strategy
Yes Bank Strategy
Yes Bank is focused on achieving a 1% ROA by fiscal year 2026 through strategic loan and deposit growth.
No opposing view found.
No opposing views available.
- Stake Acquisition
- 20%
- Current Rating
- AA-
- Target Rating
- AA
- ROA Goal
- 1% by FY26
- Unsecured Loans
- <7% of total loans
- NIM
- Stable at 2.5%