With SMBC’s Support, Yes Bank Eyes Faster Growth and Stronger Profitability

Yes Bank is entering a new phase of expansion and profitability, supported by its strategic alliance with Sumitomo Mitsui Banking Corporation (SMBC). 

With strong retail momentum, growing deposits, and stable asset quality, the bank’s leadership is confident of achieving double-digit growth and enhanced efficiency through digital innovation and improved cost structures.

Steady Deposit and Loan Growth Signals Recovery

Yes Bank recorded a 4% quarter-on-quarter rise in advances and a 7% increase in deposits, reflecting renewed investor and customer confidence. CEO Prashant Kumar attributed this growth to the bank’s focus on new customer acquisition and strengthening its transaction banking capabilities, as per the Economic Times report.

Loan Book Expansion Targets Double-Digit Growth

Yes Bank plans to achieve 15–16% annual loan growth over the next three to four years, led by corporate, commercial, and selective retail segments. 

Corporate loans have already increased by 7% sequentially, while commercial banking saw a 16% year-on-year rise. Retail lending is also expanding, though the bank remains selective with low-margin products like new car and prime home loans.

SMBC Partnership Brings Strategic Synergies

The entry of SMBC as a 24.2% shareholder, alongside State Bank of India’s 10.8% stake, has added momentum to Yes Bank’s growth plans. According to Kumar, SMBC’s global expertise will enable the bank to tap into large corporate ecosystems, supply chains, and employee networks.

 This collaboration is set to strengthen Yes Bank’s transaction banking, cash management, and trade finance capabilities, while also unlocking opportunities for cross-selling retail and SME products.

Stable Asset Quality and Improved Recoveries

Addressing investor concerns, Kumar emphasised that asset quality remains stable, with gross slippages dropping from 2.4% to 2%. The restructured loan book has declined to just ₹200 crore, signalling the resolution of legacy stress.

Read More: Razorpay, YES BANK Launch RBI-Approved Biometric Verification for Online Transactions.

Conclusion

Backed by SMBC’s partnership, a disciplined retail and digital strategy, and strengthened financial fundamentals, Yes Bank appears poised for a new era of expansion. The lender’s focus on balance sheet quality, cost efficiency, and cross-selling opportunities could make it one of India’s most competitive mid-sized banks in the years ahead.

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