Yes Bank Surges on Leadership Continuity & Strategic Stake Sale to SMBC

On August 25, 2025, Yes Bank shares jumped more than 3.5% at the open, driven by two key events that lifted investor confidence.

Leadership Stability at the Helm

At the recently concluded 21st Annual General Meeting (AGM), shareholders approved the reappointment of Mr. Prashant Kumar as Managing Director and Chief Executive Officer for a new term, effective from October 6, 2025, to April 5, 2026.

Kumar has played a key role in guiding the bank after its crisis, helping to improve governance and stability. His ongoing leadership is likely to reassure investors and support the bank's recovery plan.

RBI Clears Strategic Investment by SMBC

In parallel, the Reserve Bank of India (RBI) has granted approval to Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99% of Yes Bank's paid-up capital and voting rights.

• Earlier, SMBC was set to acquire a 20% stake, comprising 13.19% from the State Bank of India and 6.81% from other participating banks.
• With RBI’s fresh approval, the stake has now been raised to 24.99%.
• Importantly, RBI clarified that SMBC will not be classified as a “promoter” of the bank.
• The deal remains subject to clearance from the Competition Commission of India (CCI).

Operational Progress Strengthens Fundamentals

Yes Bank has shown consistent progress on the operational front:

• Net NPA ratio has declined sharply to 0.3%, a significant improvement from 4.2% in June 2022.
• This reflects improved asset quality and prudent risk management.

Outlook

With steady leadership, a potential partnership with SMBC, and improved asset quality, Yes Bank is making progress in its recovery. Still, the bank will need to keep improving its operations and balance sheet to maintain this momentum.