Yes Bank Attrition Rate Falls To 35.5% YoY, But How Will SMBC Impact It?

Yes Bank has seen an encouraging drop in its employee attrition rate to 35.5% in FY25, down from 38.2% a year earlier. This decline signals growing employee stability at a time when many private banks in India are witnessing increasing turnover. 

During a recent town hall meeting held on October 17, 2025, SMBC’s global CEO Toru Nakashima addressed Yes Bank employees at the Mumbai headquarters. He assured staff that SMBC is committed to taking the bank to its next stage of growth while maintaining job stability. This reassurance has eased concerns that the new management might focus on cost-cutting or restructuring.

SMBC’s Growing Role in Yes Bank

SMBC, a global banking leader based in Japan, acquired a 20% stake in Yes Bank for ₹13,483 crore, buying shares from State Bank of India and other private lenders. The firm has also received RBI approval to acquire another 4.99% stake, which will give it the right to appoint two nominee directors to Yes Bank’s board.

Plans for Growth and Efficiency

SMBC’s involvement goes beyond financial investment. The Japanese banking group aims to bring its global experience and operational expertise to strengthen Yes Bank’s performance. According to reports, SMBC plans to improve business parameters, make every loss-making branch profitable, and enhance efficiency through better risk management and digital transformation.

In addition, SMBC has appointed Amitabh Kant, India’s former G20 Sherpa, as an advisor to support its India growth strategy. The collaboration is expected to help Yes Bank improve its long-term sustainability and competitiveness in India’s crowded private banking space.

Yes Bank Financial Performance Snapshot

Despite positive signs on employee retention, Yes Bank still lags behind peers in profitability. Its return on assets (ROA) stands at 0.70%, lower than the industry average of 1.1–1.2%, and its net interest margin (NIM) is 2.5%, also below competitors. SMBC’s strategic inputs could help the bank bridge these gaps over time.

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Conclusion

The decline in attrition shows rising employee confidence at Yes Bank, supported by SMBC’s assurance of job security and growth focus. As SMBC deepens its role in guiding strategy and operations, the partnership could play a key role in stabilising the workforce and improving overall business performance, marking a new chapter in Yes Bank’s recovery journey.

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