YES BANK ON A NEW COURSE

SMBC'S ₹16,000-CRORE INVESTMENT GIVES IT FRESH CAPITAL, GLOBAL REACH, AND A FIRST-MOVER EDGE IN INDIA'S FAST-GROWING BANKING SECTOR.

- By Navneet Dubey

THE FAIR BREEZE BLEW, the white foam flew—and Yes Bank could very well be the first to burst into a new sea of opportunities, as Prashant Kumar, given the helm in 2020 after India's central bank guided its bailout, gets a six-month extension as its managing director and chief executive officer.

“I was given a responsibility in 2020, and today I feel relieved I have fulfilled this responsibility,” Kumar says. Powering Yes Bank's new course is Sumitomo Mitsui Banking Corporation (SMBC), which now has a near 25% stake in it. “It was not just about taking the bank out of trouble but also finding a permanent solution. The SMBC deal is that,” says Kumar.

In May, SMBC, ranked the world's 21st largest bank, bought a 20% stake from State Bank of India and seven other banks. In September, it picked up another 4.22% stake from global investment group Carlyle. The total stake size can go up to 51%.

Kumar received a three-year extension in October 2022. Another six-month extension till April 2026 followed this October, soon after SMBC's entry. “This is the first time we are getting a strategic investor who is willing to invest for the future. Two of their nominee directors have joined our board this month," says Kumar. Sneha Jain, investment manager at smallcase and founder and CEO at WealthTrust Capital Services, says, “The SMBC partnership could mark a turning point in its growth journey... Beyond the infusion of capital, the alliance offers access to stable funding, global governance practices and an expanded client network.”