Yes Bank Ltd

The Japanese banking giant had earlier proposed a 20% acquisition, including a 13.19% stake purchase from State Bank of India and 6.81% from seven other shareholders such as Axis Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank, and IDFC First Bank. RBI clarified that SMBC will not be classified as a promoter post-acquisition. The approval is valid for one year and is subject to regulatory conditions under the Banking Regulation Act, FEMA, and RBI's guidelines on shareholding in banks. The deal will also require clearance from the Competition Commission of India before completion. Mumbai-based Yes Bank, a full-service commercial bank, offers a wide array of products, services, and digital solutions, catering to retail, MSME, and corporate clients. The bank reported 59.43% surge in net profit to Rs 801.07 crore while total income rose 4.82% to Rs 9,348.11 crore in Q1 June 2025 over Q1 June 2024. Powered by Capital Market - Live

India Ratings and Research stated that the rating upgrade factors in an improvement in the consolidated profitability in 1Q FY26 due to a material reduction in RIDF exposure to 9% (FY22: 11.5%) and a target of 5% by FY27, leading to improved net interest margins (NIMs). The increased focus on retail and SME in the loan mix to around 60% in FY25 (FY20: 36%) indicates a shift away from corporate lending, resulting in sustainable improvement in return on assets (ROA). Furthermore, the upgrade also reflects the bank's improved asset quality, minimal provisioning for legacy stressed assets (net non-performing assets + net security receipts +net restructured assets), and ongoing enhancement in the deposit profile. Moreover, the bank maintains an adequate capital position, with a capital adequacy ratio of 16.2% and Tier-I capital at 14%, backed by internal accruals which are sufficient for 11%-12% growth in advances over the near to medium term. India Ratings also considers the proposed acquisition of a 20% stake by Sumitomo Mitsui Banking Corporation in YBL, expected to enhance the bank's strategic direction and governance framework. The ratings also factor in YBL's investments in low-yielding RIDF deposits due to priority sector lending (PSL) shortfalls and elevated cost-to-income ratio over several fiscals. Yes Bank is a full-service commercial bank, providing a complete range of products, services and digital offerings, to corporate, micro, small and medium enterprises and retail customers. As of June 2025, the bank had a network of over 1,253 branches and 1330 ATMs, with deposits of Rs 2.75 trillion, net advances of Rs 2.41 trillion and total assets of INR4.1 trillion. The scrip was up 0.05% to currently trade at Rs 19.36 on the BSE. Powered by Capital Market - Live

Yes Bank has received update in credit ratings from CRISIL as under: Infrastructure Bonds, Basel III Tier II Bonds - CRISIL AA- / Stable (upgraded from CRISIL A+ / Stable) Certificate of deposits - CRISIL A1+ (reaffirmed) Powered by Capital Market - Live

Yes Bank has allotted 9,20,629 equity shares under ESOP on 05 August 2025. Consequent to the allotment, the paid-up share capital of the Bank stands increased from Rs. 62,73,72,19,510/- consisting of 31,36,86,09,755 equity shares of Rs. 2/- each to Rs. 62,73,90,60,768/- consisting of 31,36,95,30,384 equity shares of Rs. 2/- each.Powered by Capital Market - Live

Yes Bank announced that the 21th Annual General Meeting(AGM) of the bank will be held on 21 August 2025.Powered by Capital Market - Live

The bank's total income rose 4.82% YoY to Rs 9,348.11 crore in the quarter ended 30 June 2025. Profit before tax climbed 59.46% to Rs 1,074.03 crore in Q1 FY26 as against Rs 673.52 crore reported in the corresponding quarter last year. Net Interest Income (NII) for Q1 FY26 stood at Rs 2,371 crore, registering a year-on-year (YoY) growth of 5.65%. Meanwhile, the net interest margin (NIM) improved to 2.5% in Q1 FY26, compared to 2.4% reported in the same quarter last year. During the quarter, operating profit was at Rs 1,358 crore, up 53.44% from Rs 885 crore posted in the same period a year ago. Provisions (other than tax) and contingencies jumped 34.1% YoY to Rs 284 crore for the quarter ended 30 June 2025. In terms of asset quality, the bank's gross non-performing assets (NPAs) rose 4.60% to Rs 4,022.14 crore as of 30 June 2025, compared to Rs 3,844.9 crore as of 30 June 2024. Additionally, net NPAs dropped by 39.01% to Rs 797.25 crore in Q1 FY26, as against Rs 1,246.03 crore in Q1 FY25. The gross NPA ratio decreased to 1.6% as of June 30, 2025, compared to 1.7% as of June 30, 2024. Similarly, the net NPA ratio declined to 0.3% as of June 30, 2025, from 0.5% as of June 30, 2024. The bank's total deposits grew by 4.1% YoY to Rs 2,75,843 crore in the quarter ended 30 June 2025. Additionally, the bank's total advances increased by 5% YoY to Rs 2,41,024 crore. The bank's CASA (Current Account Savings Account) ratio stood at 32.8% as of 30 June 2025, compared to 30.8% in the corresponding quarter of the previous year. Gross slippages for Q4 FY25 stood at Rs 1,458 crore (2.4% of advances), compared to Rs 1,223 crore (2.0% of advances) in Q4 FY25. The bank's average quarterly LCR during the quarter remains healthy at 135.8%. During the quarter, Yes Bank's overdue book in the 61'90 days declined to Rs 1,322 crore, compared to Rs 1,809 crore posted in Q1 FY25. Commenting on the results and financial performance, Prashant Kumar, managing director & CEO, YES BANK said, 'The Bank entered the new financial year on a strong footing and delivered a robust performance with net profit rising to Rs 801 crore, marking a 59.4% YoY growth. Key metrics such as RoA (0.8%), PPoP (Rs 1,358 crore), and NIM (2.5%) showed notable improvement. Asset quality remained stable, CASA witnessed healthy growth, and CET1 strengthened to 14.0% Other key highlights of the quarter were i) Credit rating upgrades from Moody's, ICRA, and CARE underscore the Bank's solid fundamentals and accelerating growth momentum ii) Sumitomo Mitsui Corporation Bank (SMBC) entered into definitive agreement to acquire ~20% equity stake in YESBANK from SBI & Other Banks. Yes Bank, a full-service commercial bank headquartered in Mumbai, offers a wide array of products, services, and digital solutions, catering to retail, MSME, and corporate clients. The scrip rose 0.10% to end at Rs 20.17 on Friday, 18 July 2025. Powered by Capital Market - Live

Net profit of Yes Bank rose 56.72% to Rs 808.65 crore in the quarter ended June 2025 as against Rs 516.00 crore during the previous quarter ended June 2024. Total Operating Income declined 1.56% to Rs 7604.62 crore in the quarter ended June 2025 as against Rs 7725.41 crore during the previous quarter ended June 2024. ParticularsQuarter EndedJun. 2025Jun. 2024% Var. Total Operating Income7604.627725.41 -2 OPM %59.1163.50 - PBDT1084.68690.52 57 PBT1084.68690.52 57 NP808.65516.00 57 Powered by Capital Market - Live

Yes Bank will hold a meeting of the Board of Directors of the Company on 19 July 2025.Powered by Capital Market - Live

Yes Bank has approved the allotment of 29,50,551 equity shares of face value of Rs. 2/- each on June 20, 2025 pursuant to exercise of 29,50,551 stock options under YBL PESOP 2020 plan and the Bank has realized Rs. 4,12,44,115 by exercise of stock options. Powered by Capital Market - Live

The agency has also upgraded the bank's baseline credit assessment (BCA) to 'ba3' from 'b1'. It has changed the rating outlooks to 'stable' from 'positive'. Moody's Ratings said that the upgrade of Yes Bank's ratings and BCA is driven by a gradual improvement in the bank's credit profile including its capital and loan loss reserves which will provide sufficient buffers against the bank's unseasoned asset risks and improving yet modest profitability and funding. Yes Bank's Ba2 deposit ratings are one notch above its ba3 BCA based on our expectation of a moderate likelihood of support from the Government of India (Baa3 stable) in times of need. The bank's gross non-performing loan (NPL) ratio declined to 1.6% as of March 2025 from 13.9% in March 2022. Reported provision coverage as a proportion of NPL increased to 80% from 71% during this period. Despite these improvements, Yes Bank's asset quality remains exposed to unseasoned risks associated with the rapid expansion in its retail and small & medium enterprise portfolios, its increased focus into higher-risk retail segments, and reliance on third-party sourcing channels. The bank's Common Equity Tier-1 (CET-1) capital ratio on a standalone basis improved to 13.5% as of the end of March 2025 from 12.2% a year earlier following the exercise of equity share warrants during the year. In May 2025 Sumitomo Mitsui Banking Corporation (SMBC) announced that it will acquire a 20% stake in Yes Bank from existing shareholders. The planned acquisition is credit positive for Yes Bank because it brings in a long-term strategic partner, with a strong balance sheet and funding capacity to support its growth. However, with a 20% stake, we expect that SMBC's influence will be limited and consequently we do not plan to factor in affiliate support in the bank's rating after completion of the transaction. The bank's efforts to reduce deposit costs and increasing lending to higher yielding, albeit higher-risk retail and small and medium enterprise segments and will help maintain its net interest margins despite the significant decline in policy rates in India over the past few months. Continued improvement in the bank's ability to meet the central bank's priority sector lending norms will also support its profitability. Yes Bank's profitability is weaker than Indian peers we rate and remains the banks' key credit challenge. The bank's funding has gradually improved with higher share of low cost current and savings deposits and retail term deposits which increased to 51% of its total deposits at the end of March 2025 from 41% as of the end of March 2021. Yes Bank is private sector bank that is headquartered in Mumbai. The bank had reported consolidated assets of Rs 4,24,100 crore as of 31 March 2025. The scrip rose 0.20% to currently trade at Rs 20.20 on the BSE. Powered by Capital Market - Live