A big turn for Yes Bank is going to come, the bank’s CEO Prashant Kumar has revealed that Japan’s famous Sumitomo Mitsui Banking Corporation (SMBC) is now going to buy 20 per cent stake in the bank and the deal will be completed by the second quarter of 2025-26.

What did Yes Bank say?

Yes Bank’s managing director and CEO, Prashant Kumar said in a conversation with CNBC-TV18, “There was a kind of pressure on the bank till now. We needed a strong strategic partner. This deal with SMBC is a big step in our transformation journey.”

Who is selling stake?

The deal will buy YES Bank stake from SMBC, SBI and 7 other big banks, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.

Deal value?

The value of this deal will be around 13,483 crore. It is being called the largest foreign investment deal ever in the Indian banking sector. But the deal is yet to be approved by RBI and CCI. But if all goes well, then it can prove to be a gamechanger for Yes Bank.

What will happen next?

Prashant Kumar says, “This investment of SMBC is a sign of trust on our strength. With this we will be able to move fast in the second phase of our transformation.” He also added that the vision of SMBC is long-term, that is, it is not just a money deal, but a strategic partnership.

Rating will improve, funding will increase

CEO said that this deal will improve the credit rating of the bank, which will also prevent big corporates and government institutions to work with the bank. He said, “Today many institutions work with only those banks who have a minimum rating. With the SMBC, we will be able to cross that blockage with partnership with SMBC.”

Disclaimer: (Information provided here is being given only for information. It is necessary to tell here that the investment market is subject to risks. Always consult expert before investing as an investor. Never is advised to invest money from Abplive.com.

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YES Bank released the results of the fourth quarter (January-March) of FY 2024-25 on Saturday, in which the bank performed brilliantly and recorded a net profit of 738 crores. This is an increase of 63 per cent over 452 crores in the same quarter of last year.

What did the bank say?

Bank Managing Director and CEO Prashant Kumar said in his statement, “Q4FY5 was another important quarter for us. We have constantly improved the major indicators and the increase in profits shows the success of our strategy.”

Understand data

Net Profit: 738 crores (63 percent increase, Net profit of 452 crore in last quarter)

Net Interest Income (NII): 2,276 crore (5.7 percent increase)

Net Interest Margin (NIM): 2.5 percent

Provisioning: 318 crores (32.5 percent fall)

Gross NPA: 1.6 percent (10 basis point fall)

Net NPA: 0.3 percent (30 basis point fall)

Reasons behind the bounce in profit

Yes Bank has many major reasons for the increase in profits. The most important of these is an increase in interest income. Actually, the bank’s original earnings, that is, income from loan has improved. In addition, the reserve created for poor loans has been reduced, which increased the profit. The bank has controlled its NPAs to a great extent.

While gross NPA declined from 1.7 percent to 1.6 percent, the net NPA has come down from 0.6 percent to 0.3 percent. This makes the bank’s balance sheet strong and a better possibility of loan recovery in future.

Stock market response

The Indian stock markets were closed due to Good Friday on Friday, 18 April. Whereas, YES Bank shares made positive trends on Thursday, the stock rose 1.23 per cent to close at Rs 18.90 that day. While the previous closed price was Rs 17.87.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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Yes Bank said on Saturday that it has received a tax notice of Rs 2209 crore for assessment year 2019-20. In an official statement issued by the bank, it was told that it has received this notice under Section 156 from the Income Tax Department and it has demanded tax liability.

Yes Bank says that they will take appropriate legal steps against this notice of Income Tax Department. The bank further said that this tax notice is analyzed and is consulting to take appropriate steps as per legal and regulatory requirements.

It has been said on behalf of Yes Bank that due to this notice, there is no possibility of adverse effects on its finish, operations or any other activities.

The bank said that an order was received on 30 September in 2021 under Section 144 of the Income Tax Act 1961 for the Assessment Year 2019-20. In which the bank was given a refund according to the refunds claimed in the earlier income tax return. In April 2023, this respective assertion year was re-fired by the Income Tax Department.

In a statement issued by the bank, it was further stated that the Income Tax Department’s Faceless Unit passed the Re-Essence Order on March 28 in 2025 and no additions were made in it. In such a situation, the bank does not have any outstanding tax from the Income Tax Department.

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