Back from the brink: Yes Bank says SMBC stake buy creates room for rating upgrade

Japanese lender Sumitomo Mitsui Banking Corporation’s (SMBC) acquisition of nearly 25 per cent stake in Yes Bank is a strong vote of confidence and could open doors for a potential rating upgrade, Yes Bank Managing Director and CEO Prashant Kumar said.

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‘The Rs 16,000-crore investment from the global financial institution is strategic, helping Yes Bank raise capital, expand business through network tie-ups, and enhance profitability. “With a strategic investor and the ability to raise capital, the possibility of a rating upgrade is there,’ Kumar said. The bank’s rating has already improved to ‘AA-’ from “D’ over the last five years.