Indian Railways Reports ₹2.56 Lakh Crore Revenue in FY24, Driven by Freight Growth

Union Railways Minister Ashwini Vaishnaw shared the revenue details of Indian Railways for the financial year ending March 31, 2024. The total revenue earned was ₹2,56,093 crore. The total expenditure was ₹2,52,834 crore. This resulted in a net revenue of ₹3,260 crore.

Indian Railways is one of the largest rail networks globally. It plays a significant role in India’s economy. In FY24, its contribution to India’s GDP was about 1.5%. The railway’s revenue comes from various key areas.

Freight Operations: The Main Profit Source

Freight operations are a major contributor to the earnings of Indian Railways. This has been especially true in recent years. In FY24, Indian Railways transported 1,591 million tonnes of freight. This is a significant increase from 1,233 million tonnes in FY21. This shows a growth of 29%.

Several initiatives have driven this growth. The Gati Shakti Multi-Modal Cargo Terminal (GCT) policy encourages private sector investment in modern freight terminals. This has improved efficiency and increased handling capacity. Schemes attracting private investment in specialized wagons have also helped. These wagons transport commodities like cement, oil, and automobiles efficiently.

Indian Railways has also expanded its range of transported goods. Policies like the ‘Cargo Aggregator Transportation Product’ and ‘Joint Parcel Product-Rapid Cargo Services’ have been introduced.

Passenger Services: A Significant Contributor

While freight is the main profit driver, passenger services also contribute significantly to revenue. Running special trains has helped. Increasing the capacity of existing trains is another factor. Introducing new trains with better facilities has also boosted passenger earnings.

Non-Fare Revenue Generation

Indian Railways is also focusing on non-fare revenue. The NINFRIS policy has introduced various services. These include nursing pods and luggage wrapping. Digital cloakrooms and retail kiosks at stations are also part of this.

Other Revenue Sources of Indian Railways

The railway sector earns revenue from other sources as well. These include advertisements on trains and stations. Rent from commercial spaces like parking lots and ATMs is another source. Catering receipts also add to the revenue.

Revenue Tracking and Monitoring by Indian Railways

Indian Railways has a strong system for monitoring revenue. This is done continuously at each railway station. Stations are categorized based on passenger earnings and footfall. The categories are Non-suburban Grade (NSG1-6), Suburban Grade (SG1-3), and Halt Grade (HG1-3).

Revenue sources at each station are varied. Passenger earnings come from reserved and unreserved ticket sales. Freight earnings include the transportation of goods. Other coaching earnings include parcel and luggage charges. Sundry earnings include rent and catering receipts.

Officials at different levels oversee revenue collection. This happens at the station, division, and zonal levels. Digital applications developed by CRIS are used for this. Systems like PRS, TMS, and FOIS provide real-time data and analytics. This helps Indian Railways manage revenue effectively and make informed decisions.

Conclusion

Indian Railways demonstrated its financial strength in FY24, earning a substantial revenue. While managing modernization and affordability, its diverse revenue streams, particularly freight, and robust monitoring systems position it for continued growth and its vital role in India’s economy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

CRISIL Intelligence: Analysis of Thali Costs in March 2025

The cost of a home-cooked vegetarian thali saw a month-on-month decrease of 2% in March 2025. The cost of a non-vegetarian thali also dropped by 5%, as per a report by CRISIL Intelligence that was released on Monday.

Reasons for the Fall 

The primary reason for this fall was the lower prices of important vegetables. The arrival of fresh crops in the market led to a substantial fall in the prices of tomatoes (8%), potatoes (7%), and onions (5%).

In the case of non-vegetarian thalis, a 7% drop in broiler chicken prices contributed to the cost reduction. This price dip was due to sufficient supply in North India and weakened demand in South India.

Comparison of Thali Cost with March 2024

Compared to March 2024, the cost of a vegetarian thali fell by 3%. This was mainly driven by a sharp 34% year-on-year drop in tomato prices. Tomato prices decreased from ₹32/kg to ₹21/kg. This was because of a 29% rise in tomato arrivals across the country. Especially in the southern states, better Rabi yield and good reservoir levels boosted production.

However, this decline was partially offset by an increase in the prices of some other items. This includes onion prices, which rose by 6% compared to last year. Moreover, potato prices increased by 2%, and vegetable oil prices surged year-on-year by 19%.

How Does CRISIL Calculate Thali Costs?

CRISIL calculates the costs of thalis based on the input prices from 4 regions of India. These are North, South, East, and West India. This method reflects the changes in household food expenses across the country.

Future Price Expectations

Based on news reports, vegetable prices are likely to increase from the start of April. While onion prices will remain low, potato prices will also rise as cold storage stocks enter the market. Furthermore, tomato prices might also witness a moderate increase due to lower Rabi arrivals.

Conclusion

The cost of both vegetarian and non-vegetarian thalis decreased in March 2025, mainly due to lower vegetable and chicken prices. While tomato prices saw a significant year-on-year drop, some other food items became more expensive. The increase in vegetable prices is expected to lead to the growth of veg thali cost in April.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Coal India Share Price in Focus: Check Why?

The Coal India share price was up 0.78% and was trading at ₹380.45 on Tuesday at 9.32 AM. This comes after a recent Supreme Court ruling granting states the power to tax mineral rights and mineral-bearing lands retrospectively. The company will pay around ₹38,000 crore to state governments. However, it expects to recover nearly 80% of this amount through its Fuel Supply Agreements (FSAs).

Impact of the Supreme Court’s Ruling on Coal India

In August 2024, the Supreme Court granted states legislative power to levy taxes on mineral rights and land, beyond the royalty stipulated under the Mines and Minerals (Development and Regulation) Act of 1957. The verdict clarified that royalty on minerals is not considered a tax, but rather a contractual obligation.

This ruling has led to Coal India’s large financial liability, estimated at ₹38,000 crore.

Coal India’s Financial Performance 

In the third quarter of FY25, Coal India’s revenue from operations stood at ₹35,779.78 crore. This demonstrates the company’s continued growth, even in light of the new tax obligations. For FY24, Coal India reported a total revenue of ₹1.42 lakh crore, which reflects its dominant position in the coal production sector.

Diversification and IPO Plans

Apart from its traditional coal mining business, Coal India has been diversifying into the mining of critical minerals. The company is also exploring international asset acquisitions to broaden its market reach.

In a strategic move, Coal India plans to launch an Initial Public Offering (IPO) for 2 of its wholly-owned subsidiaries in FY26. This includes the Central Mine Planning and Design Institute (CMPDI) and Bharat Coking Coal Limited (BCCL). News reports indicate that the Red Herring Prospectus for the IPO will be filed by May 2025.

The company intends to list 25% of its equity in both subsidiaries.

Coal India’s Subsidiaries’ Performance

BCCL is a major coking coal producer in India, contributing approximately 50% of the total coking coal required by the steel industry. In FY24, BCCL reported a significant profit of ₹2,091.67 crore, compared to ₹530.19 crore in FY23.

Similarly, CMPDI, Coal India’s consultancy arm, posted a profit of ₹732.84 crore in FY24, up from ₹366.95 crore in FY23. CMPDI provides essential services in mineral exploration, mining, and infrastructure development.

BCCL’s Mining Operations

BCCL operates 4 underground mines, 25 opencast mines, and 3 mixed mines. During FY24, BCCL produced 41.096 million tonnes (MT) of coal, with an offtake of 39.19 MT. These operations are crucial for the steel industry, which relies heavily on coking coal.

Conclusion

Coal India faces a substantial financial challenge due to the Supreme Court’s decision, but it is poised to recover a significant portion of the liability through its FSAs. The company’s diversification into critical minerals and its planned IPO for subsidiaries BCCL and CMPDI show a commitment to long-term growth. As one of India’s largest state-owned enterprises, Coal India continues to play a vital role in the country’s economy.

 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Top Gainers and Losers on April 7, 2025: Hindustan Unilever & Zomato Shine

On April 7, 2025, the BSE Sensex was down by 2.95%, closing at 73,137.90, while the Nifty50 fell by 3.24% to 22,161.60.

Here are the top gainers and losers for the day:

Top Gainers of the Day

Symbol LTP (₹) Change (%)
HINDUNILVR 2,250.00 0.24
ZOMATO 211 0.22

  • Hindustan Unilever 

Hindustan Unilever share price opened at ₹2,150, reached a high of ₹2,261.60, and closed at ₹2,250, gaining 0.24%. The company continues to focus on expanding its consumer goods segment with strong digital initiatives.

  • Zomato

Zomato share price opened at ₹196, hit a high of ₹211.94, and closed at ₹210.22, marking a 10.53% increase. The stock surged following positive investor sentiment about its recent efforts to expand its food delivery services.

Top Losers of the Day

Symbol LTP (₹) Change (%)
TRENT 4,745.05 -14.7
JSWSTEEL 930 -7.53
TATASTEEL 130.2 -7.26
HINDALCO 564.45 -5.92
TATAMOTORS 581.1 -5.34

  • TRENT

Trent share price opened at ₹5,006.60, reached a high of ₹5,006.60, and closed at ₹4,745.05, thereby falling by 14.7%. The sharp drop follows disappointing financial results or market sentiment affecting its retail performance.

  • JSW Steel 

JSW Steel share price opened at ₹906, hit a high of ₹959, and closed at ₹930, thereby falling by 7.53%. The decline is attributed to weaker global steel prices and concerns over industry demand.

  • Tata Steel 

Tata Steel share price opened at ₹128, peaked at ₹130.35, and closed at ₹130.20, thereby falling by 7.26%. The decline follows market reactions to lower-than-expected earnings in the steel sector.

  • Hindalco 

Hindalco share price opened at ₹559, reached a high of ₹570, and closed at ₹564.45, thereby falling by 5.92%. The stock’s fall is likely due to concerns over global aluminium prices and market conditions.

  • Tata Motors 

Tata Motors share price opened at ₹560.5, touched ₹582, and closed at ₹581.10, thereby declining by 5.34%. The drop follows market fears about the impact of rising raw material costs on margins in the automotive sector.

Conclusion

Today’s top gainers and losers highlight the ever-changing nature of the stock market, shaped by corporate earnings, economic reports, and global trends. Investors should stay informed and carefully analyze market shifts before making investment choices.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Adani Ports Share Price in Focus as It Starts Operations at Colombo Terminal

Adani Ports share price recovered significantly on Monday, April 7. This happened after the company announced the start of operations at the Colombo West International Terminal (CWIT). CWIT is located at the Port of Colombo.

Public-Private Partnership

CWIT was developed through a public-private partnership. The operating consortium includes APSEZ, a major port operator from India. Sri Lankan conglomerate John Keells Holdings PLC is also part of it. The Sri Lanka Ports Authority is the third partner. The agreement is for 35 years under a Build, Operate, and Transfer (BOT) model.

Adani Ports Share Price Movement

Following the announcement, the company’s shares showed a strong recovery. They rebounded by 6.5% from the day’s low. Despite this recovery, the shares closed the trading session with a decline of 2.56%. The closing price was ₹1,119.0 per share on the NSE.

Terminal Capacity and Features

The CWIT project involves a substantial investment of US$800 million. The terminal has a quay length of 1,400 meters. It also has a depth of 20 meters. This allows the terminal to handle about 3.2 million Twenty-foot Equivalent Units (TEUs) each year. It is the first deep-water terminal in Colombo with full automation.

Enhanced Efficiency

The terminal’s design aims to improve cargo handling. It will also reduce vessel turnaround times. This will enhance the Port of Colombo’s position. It will become a more important transshipment hub in South Asia.

Construction Progress

Construction of the terminal began in early 2022. It has progressed quickly since then. The installation of advanced infrastructure is almost complete. CWIT is expected to set new standards for operational efficiency. It will also improve reliability in regional maritime logistics.

Conclusion

The commencement of operations at the Colombo West International Terminal marks a positive step for Adani Ports and the Port of Colombo. This modern, automated terminal is set to boost trade and create economic opportunities for Sri Lanka, strengthening its role as a key maritime hub in the region.

Read more on: What does Adani Ports do?

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

What Does GTRI’s Report on Indian Exports Say About US Tariffs?

A recent GTRI report predicts a decline in India’s merchandise exports to the US in 2025. This decline is estimated at US$5.76 billion due to the imposition of higher tariffs by the Trump administration. 

Impact on Key Sectors

Several sectors will be significantly affected, as per the Global Trade Research Initiative report. These include gems and jewellery, marine products, electronics, and auto parts. The GTRI analysis used 2024 trade data. It also factored in the competitiveness of other exporters like China, Mexico, and Canada.

In 2024, India shipped US$89.81 billion worth of goods to the US. Now, almost 75% of these goods, valued at US$67.2 billion, will face a 26% duty. 

The US has been India’s largest export destination for years. However, tariffs are now used as a negotiating tool under President Trump’s ‘America First’ policy. Indian policymakers will henceforth face tough choices.

Policy Responses and Exemptions

The Indian government has indicated it will continue bilateral trade negotiations. Some industries may benefit from trade diversion, especially where Chinese goods have been penalised heavily. 

However, steep hikes on industrial and consumer goods will reduce India’s competitiveness. This is because they aim to align tariffs with reciprocal market access. For example, energy products, pharmaceuticals, and solar panels remain exempt under the new tariffs policy introduced by the Trump administration. 

Which Sectors will lose, as per GTRI’s Report? 

Here is a breakup of the sector-specific declines expected to be witnessed by the Indian economy:

Sector Projected Decline (%)
Fish and Crustacean Over 20%
Iron and Steel Items 18%
Precious Stones & Jewellery 15%
Auto Parts Over 12%
Electronics Over 12%
Processed Meat & Fish 14.20%
Spices (including Coffee & Tea) 13.50%
Cereals (mainly Rice) 12.30%

 

Which Sectors will gain, as per GTRI’s Report? 

As per the GTRI report, India’s textiles and garments sector may gain market share in the United States. Moreover, exports of home textiles may increase by 4.2%. Here is a detailed breakup of the different sectors: 

Sector Projected Change (%)
Knitted Garments +3.2%
Home Textiles +4.2%
Pharmaceuticals +2.1%
Footwear +3.1%
Tools and Cutlery +2.1%

Apart from these, kitchenware and footwear may also report modest gains.

Conclusion

India’s exports to the US had been growing. Exports were US$75.6 billion in FY22 and US$78.3 billion in FY23. Although they dipped to US$77.5 billion in FY24, the long-term trend was positive.

However, new US tariffs pose significant challenges for Indian exporters, potentially leading to a US$5.76 billion decline. Sectors like gems, seafood, and electronics face substantial impacts, while pharmaceuticals see continued growth.

Read more on: How Trump’s 26% Reciprocal Tariffs Could Impact the Indian Stock Market?

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

When to Expect the One State-One RRB Scheme?

As per news reports, the ‘One State-One RRB’ plan is expected to be launched soon by India’s Finance Ministry. This plan aims to consolidate 43 Regional Rural Banks (RRBs) into 28. This will increase operational efficiency and reduce costs.

Consolidation Details

Most consolidation work is complete. The fourth round of mergers will happen soon. As per news reports, 15 RRBs will merge across various states.

Andhra Pradesh, with 4 RRBs, will see the most consolidation. Uttar Pradesh and West Bengal, with 3 each, will also be affected.

Other states with 2 RRBs each include Bihar, Gujarat, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan.

Financial Performance and Background

In 2021-22, the Centre invested ₹5,445 crore in RRBs. This supported their growth and they achieved record highs. RRBs’ performance improved considerably in 2023-24.

Consolidated net profit reached ₹7,571 crore. The capital adequacy ratio was 14.2% as of March 31, 2024. Their Gross Non-Performing Assets (GNPA) were 6.1%, reaching a 10-year low.

The Centre had begun RRB consolidation in 2004-05. This reduced RRBs from 196 to 43 by 2020-21. They were originally formed under the 1976 RRB Act to serve small farmers and rural artisans.

Legal Framework and Current Operations

A 2015 amendment allowed RRBs to raise capital from other sources. This has boosted their ability to access funding and improve operations. Under the ownership structure, the Centre holds a 50% stake in RRBs, while the sponsor banks own 35%, and state governments hold 15%.

As of March 31, 2024, 43 RRBs operate 22,069 branches across 26 states and 3 union territories. These banks play a critical role in providing banking services to rural areas, supporting agricultural and rural development. In response to technological advancements and the growing demand for digital services, RRBs have increasingly adopted digital banking solutions.

Conclusion

The ‘One State-One RRB’ plan consolidates 43 RRBs to 28 for efficiency. Capital infusion and improved performance support this. Digital services will modernize operations. This aims for a stronger, more sustainable rural banking system.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

ITR Filings: What Does the Income Tax Department’s Latest Report Say?

The details of ITR filings released by the Income Tax department can shock you. As of March 31, 2025, 3.24 lakh individuals filed income tax returns (ITR) for over ₹1 crore! Of these, 2.97 lakh individuals reported incomes between ₹1 and ₹5 crore!

ITR Filings By High-Income Earners

The data shows 16,797 individuals filed ITRs for incomes between ₹5 and ₹10 crore. Another 10,184 individuals filed for incomes exceeding ₹10 crore.

When considering all tax filers, including companies, firms, HUFs, trusts, and government bodies, the total number of returns above ₹1 crore reached 4.68 lakh. This includes 3.89 lakh returns in the ₹1-5 crore range.

Additionally, over 36,000 had incomes between ₹5-10 crore, and 43,000 had incomes above ₹10 crore.

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Overall Tax Return Data

The Income Tax India website has 14.01 crore registered users. Of these, 12.91 crore are individual users. Over 11.86 crore individual users have linked their Aadhaar.

Total returns filed up to March 31, 2025, were 9.19 crore. E-verified returns stood at 8.64 crore.

Growth in ITR Filings

There was significant growth in ITR filings for FY25 compared to FY24. ITR-2 saw a 34.69% increase. ITR-1 had a marginal 0.54% increase. ITR-3 showed a 16.66% increase.

Overall, there was a 7.81% cumulative growth in ITR filings. This highlights increased tax compliance.

The data shows a rise in high-income tax filers and overall ITR filings, indicating improved tax compliance and financial reporting.

Conclusion

The increase in high-income tax filers and overall ITR filings for FY25 signals a positive trend in tax compliance and financial transparency. With a 7.81% growth in total filings, India’s tax reporting system continues to show improvement, reflecting greater awareness and adherence to tax obligations among taxpayers.

Read more on: When Will Filing Start? Types of Forms and Online Filing Process

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Bajaj Housing Finance Share Price in Focus After Strong Q4FY25 Update

Bajaj Housing Finance share price declined by 4.80% on Monday and was trading at ₹115.73. This was despite reporting a robust business performance for the January-March quarter of FY25. Here is why:

Q4 FY25 Performance

Gross disbursements for Q4FY25 were approximately ₹14,250 crore. This was a growth from ₹11,393 crore in the same quarter last year. This reflects growing demand for housing finance products.

Growth in AUM and Loan Assets

On March 31, 2025, Assets Under Management (AUM) rose by 26% to about ₹1,14,680 crore. This is a considerable growth from ₹91,370 crore last year. AUM grew by ₹6,365 crore in Q4FY25, reflecting the company’s expansion policies.

Loan assets also recorded a significant rise, and reached around ₹99,500 crore at the end of March. This was a notable growth from ₹79,301 crore in the previous year. This highlights that Bajaj Housing Finance is strengthening its position in the lending sector.

Read more on: Bajaj Housing Finance Q3 FY25 Results: Profit Rises 25%, AUM Grows

Lock-In Period Expiry

April is expected to be a key month for the company as the shareholder lock-in period expires. As per news reports, nearly 529 crore shares, or over 64% of the company’s outstanding equity, will become eligible for trading in April.

It’s important to note that the expiration of the lock-in period doesn’t mean all shares will be sold. It only makes them available for trading in the open market.

Bajaj Housing Finance Share Price Performance

On Friday, Bajaj Housing Finance share price closed at ₹121.6, down 2.4%, while the Sensex dropped 1.22%. The stock has fallen 4% year-to-date and 19% over the past 6 months. Its market capitalisation currently stands at ₹96,330 crore.

Conclusion

Despite a strong performance in Q4 FY25, the share price of Bajaj Housing Finance has fallen due to the upcoming expiry of the lock-in period, which will make a large portion of shares tradable. This potential influx of shares into the market has created investor apprehension, overshadowing the positive financial results.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Yes Bank Share Price in Focus Following SBI’s Possible Stake Sale

Yes Bank share price was down 3.96% and was trading at ₹16.51 on the NSE. This follows the recent declaration of its Q4 FY25 financial results. It has reported an 8.2% year-on-year growth in loans and advances, reaching ₹2.46 lakh crore as of March 31, 2025.

Yes Bank’s Financial Performance

Yes Bank share price is expected to remain in focus in the coming days. The bank had reported a growth in its credit-to-deposit ratio from 85.5% in March 2024 to 86.7% this year. This indicates that Yes Bank is utilising a higher portion of its deposits to extend credit, reflecting stronger lending activity.

The Liquidity Coverage Ratio of Yes Bank has also risen to 125% from 116.1% earlier. This reflects its improved financial stability and capacity to handle potential liquidity stresses more effectively.

Improved Asset Quality

Yes Bank’s asset quality showed improvement in Q3 FY25, with the Gross Non-Performing Asset (GNPA) ratio decreasing to 1.6% from 2.0% in the same period last year. The ratio remained stable sequentially.

Yes Bank Share Price in Focus After MUFG Bank’s Potential Offer to SBI

As per news reports, Japan’s MUFG Bank is close to finalising an agreement to buy a stake in Yes Bank. The deal could value Yes Bank at US$6.5 to US$7 billion. The discussions are ongoing between MUFG, State Bank of India (SBI), and other smaller stakeholders in Yes Bank.

At 12.15 AM, SBI share price was down 4.18% and was trading at ₹735.35.

SBI’s Involvement in Yes Bank

SBI currently holds the largest stake in Yes Bank at 23.98%. In 2020, SBI invested ₹6,050 crore to acquire a 49% stake in Yes Bank as part of a rescue plan for the troubled lender. However, after private equity firms Carlyle and Advent invested in the bank last year, SBI’s stake was reduced to 26.14%.

Under the Yes Bank resolution plan in 2020, other major investors included HDFC Ltd, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank, and IDFC First Bank. HDFC Ltd and ICICI Bank each invested ₹1,000 crore, while Axis Bank contributed ₹600 crore, Kotak Mahindra Bank ₹500 crore, Bandhan Bank and Federal Bank ₹300 crore each, and IDFC First Bank ₹250 crore.

Current Stakeholders and Market Position

As of December 2024, several financial institutions still hold stakes in Yes Bank. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Axis Bank each hold between 1-3% stake, while Life Insurance Corporation of India (LIC) holds 4%. MUFG’s potential acquisition of a stake in Yes Bank would further solidify its position in India’s banking sector.

MUFG has been looking for growth opportunities in India and has considered acquisitions as part of its strategy. The Japanese bank already has the largest network among Japanese banks in India, with five locations across the country.

Yes Bank Share Price Declined Amidst Leadership Changes

Yes Bank is also undergoing internal restructuring, including leadership changes. Two senior executives have exited the bank, coinciding with efforts to improve operational efficiency and reduce costs. In June 2024, Yes Bank also laid off several employees across various departments, including wholesale, retail, and branch banking segments.

Conclusion

MUFG’s potential stake acquisition in Yes Bank and the bank’s positive financial results indicate a growing interest in the Indian banking sector. While leadership changes and internal restructuring are ongoing, Yes Bank is focusing on improving its operations and profitability.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.