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 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.
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.
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 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.
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 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.
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.
Published on: Apr 7, 2025, 12:59 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
