Archive · 23 Jul 2025
Yes Bank Halts MFI Acquisition Amid Industry Woes
Yes Bank, a bank, has decided not to buy a microfinance company for now.
They had wanted to buy one to help them with certain lending rules.
However, the microfinance industry is having some problems, so the bank is waiting.
The microfinance industry's loans are not doing so well, meaning some people are not paying them back.
The bank is now focusing on lending that makes them more money, like to small businesses.
Yes Bank has paused its plan to acquire a microfinance institution (MFI).
The decision is due to the current challenges within the MFI industry.
Yes Bank initially planned the acquisition in 2022 to meet priority sector lending (PSL) norms.
The bank has since met PSL requirements and is now focusing on profitable lending segments.
The MFI industry's assets under management (AUM) decreased by 12% year-over-year as of March 2025.
- Who
- Yes Bank.
- What
- Yes Bank put on hold its plan to acquire a microfinance institution.
- When
- The plan was put on hold recently (as of July 2025).
- Where
- N/A
- Why
- Due to broader stress and challenges within the microfinance industry, including increased non-performing assets.
MFI Industry Status
Yes Bank's Strategy
Industry Woes
MFI Industry Status
The microfinance industry is facing challenges with a decrease in AUM and rising NPAs.
Yes Bank's Strategy
N/A
- Yes Bank Advances (y-o-y)
- 5% to ₹2.41 lakh crore
- Yes Bank Deposits (y-o-y)
- 4% to ₹2.75 lakh crore
- Commercial Banking Loans (y-o-y)
- 19% to ₹59,652 crore
- MFI AUM Decrease (y-o-y, March 2025)
- 12% to ₹1.47 lakh crore
- PAR 31-180 days (March 2025)
- 6.2%