During Thursday’s trading session, shares of a full-service commercial bank headquartered in Mumbai surged nearly 3.5 percent on BSE. The factors contributing to this positive movement in the share price are explained in detail below.
With a market capitalisation of Rs. 67,541 crores, at 02:13 p.m., the shares of YES Bank Limited were trading in the green at Rs. 21.54 on BSE, up by nearly 3 percent, as against its previous closing price of Rs. 20.96. The stock has delivered negative returns of around 5 percent in one year, but has gained by more than 23 percent in the last one month.
What’s the News
Global credit rating agency Moody’s Ratings has described Sumitomo Mitsui Banking Corporation’s (SMBC) planned acquisition of a 20 percent stake in YES Bank as a credit-positive development. According to Moody’s, the transaction introduces a financially robust and strategically committed long-term partner, enhancing YES Bank’s growth prospects.
Japan’s SBMC—one of the world’s largest banking groups— will acquire a 20 percent stake in the YES Bank from SBI and seven other private banks—HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank. These institutions had infused capital into YES Bank during its restructuring in March 2020. The acquisition will be executed at Rs. 21.50 per share, amounting to a total deal of Rs. 13,482 crore. Post the acquisition, SBMC will emerge as the bank’s largest shareholder, while SBI will remain a major shareholder holding over 10 percent stake in the bank.
Bank Outlook
The transaction is expected to drive YES Bank into its next phase of growth, enhancing profitability and long-term value creation, while maintaining the continued parentage of the SBI, the largest bank in India.
The bank will benefit from improved credit ratings, strengthened brand reputation, and the adoption of global governance standards through its association with SBMC.Leveraging strong institutional parentage will further build stakeholder trust and confidence.
Additionally, YES Bank aims to capitalise on cross-border expertise, unlocking new business opportunities through improved access to Japanese and other global corporations.
Financial Performance
YES Bank reported a significant growth in net interest income (NII), experiencing a year-on-year increase of nearly 6 percent, rising from Rs. 2,148.5 crores in Q4 FY24 to Rs. 2,271.3 crores in Q4 FY25.
Similarly, during the same period, the bank’s net profit increased from Rs. 467.3 crores to Rs. 744.6 crores, representing a rise of around 59 percent YoY. Net Interest Margin (NIM) of the Bank stood at 2.5 percent for Q4 FY24 as compared to 2.4 percent in Q3 FY25 and Q4 FY25.
Segment Performance
YES Bank reported a total consolidated segment revenue of Rs. 9,523.85 crore for Q4 FY25. Retail Banking segment emerged as the largest contributor, accounting for Rs. 3,903.8 crore or ~41 percent of the total segmental revenue. This includes a marginal contribution of Rs. 0.08 crore from the Digital Banking sub-segment, while the remaining Rs. 3,903.73 crore came from Other Retail Banking operations.
The Treasury segment contributed Rs. 1,984 crore, representing 20.83 percent of the total segmental revenue. Corporate Banking segment followed, with a contribution of Rs. 3,266.25 crore, accounting for 34.3 percent. Revenue from Other Banking Operations stood at Rs. 335.25 crore (3.52 percent), while the Unallocated segment added Rs. 34.55 crore (0.36 percent) to the overall consolidated segment revenue.
About the Bank
YES Bank Limited, a full-service commercial Bank headquartered in Mumbai, is a publicly held bank engaged in the business of providing a wide range of products, services, and digital solutions, catering to retail, MSME, and corporate clients.
The bank operates its brokerage business through YES SECURITIES, a subsidiary of the Bank. YES Bank has a pan-India presence, including an International Banking Unit (IBU) at GIFT City and a Representative Office in Abu Dhabi.
Written by Shivani Singh
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