Yes Bank Share: Yes Bank CEO says SBI has doubled its earnings, now it's our turn, details 3 big plans

News Topical, Digital Desk : Yes Bank MD & CEO Prashant Kumar stated that the completion of the deal with Japan's SMBC (Sumitomo Mitsui Banking Corporation) marks a new chapter for the bank. He stated that SMBC directors have now joined the bank's board, and the two institutions will work together to explore new business opportunities. Prashant Kumar also stated that the bank's strategy remains unchanged and that the RoA target could be achieved before FY27.

SMBC's entry opens new doors.
Now we need to work together and forge new business connections from this relationship. This is just the beginning for us."

He added that all investor questions have been answered—whether regarding the bank's stake or future fundraising.

SMBC will have the right to participate in any future capital raise. "

SMBC is a long-term investor for us, who has expressed confidence in Yes Bank's future," Prashant Kumar said. "There is no pressure on SBI, and it is also ahead in profits." The CEO stated that SBI is now under no regulatory pressure to reduce its stake. "SBI has generated more than double the return on its investment in Yes Bank—that too tax-free," he said. He also clarified that Yes Bank and SMBC will jointly determine a new strategic direction, but there will be no change to the bank's current strategy. The bank's growth will be driven by a balance of 60% retail + SME and 40% corporate book. The arrival of SMBC will boost new-generation technology and digital investments. The bank will also focus on strengthening its distribution network. There are opportunities in the wealth management segment, but it is still in its early stages. We ended the last fiscal year at around 0.8% RoA. We can achieve the target of 1% RoA even before FY27, he said. A strategy has been prepared to increase credit growth . The bank's advances grew 3.9% QoQ in Q2. Prashant Kumar said that excluding Q1, the bank can target 10–12% credit growth this year. Rapid growth has its own pain points, so we will focus on quality credit. We want growth to be accompanied by profitability. He explained that the bank's credit costs have improved, and recoveries in credit card and unsecured loans are improving. "The bank's focus is on continuously improving CASA and NIM . By reducing interest rates, the bank is reducing its cost of funds. Q2 will be the most challenging quarter in terms of NIM, but improvement will be visible from Q3," Prashant Kumar said. "Now, trust, not ranking, is important." Prashant Kumar clearly stated that the bank is no longer merely in the race for ranking or size. Before 2020, Yes Bank was the fourth largest bank in the country, but that was not the true picture. Now, we do not want to play the 'snake and ladder game'—we will not slip in pursuit of a position." He said that Yes Bank has now built a franchise that is not dependent on any one person. This is the biggest satisfaction for me. With the addition of SMBC, Yes Bank now has a global network, new technology, and capital strength. The bank is now focusing on improved profitability and stability while pursuing cautious growth.

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