YES Bank’s chief, Prashant Kumar, says the bank now has a long-term partner in Sumitomo Mitsui Banking Corporation (SMBC). In a wide-ranging talk, Kumar explained how SMBC can help YES Bank grow, lift its credit profile and offer more services to big corporate clients and their supply chains.
From crisis to a steady path
When Kumar arrived after the 2020 rescue, YES Bank was in trouble. Now, five years later, the bank is rebuilding. Kumar recently received a six-month extension to lead the bank until April 2026. That gives YES Bank time to strengthen and to work closely with SMBC as the foreign shareholder shapes future strategy.
Why a foreign bank partner matters
Kumar said private banks in India need patient, high-quality capital to get bigger. He pointed out three typical capital sources:
- corporate groups (limited by rules),
- private equity (often short term), and
- foreign banks (longer horizon).
SMBC, a large global bank, fits the long view. Kumar called SMBC a patient strategic partner — one willing to stay invested and help the bank grow step by step.
How SMBC and YES Bank can work together
SMBC already serves nearly 1,000 large corporate clients in India, but it cannot always cover everything these companies need. Kumar outlined clear areas where YES Bank can add value:
- Cash management and transaction banking: YES Bank can provide day-to-day services that SMBC’s clients currently get from other banks.
- Trade finance: Joint solutions can help corporates manage imports/exports.
- SME finance: Large corporates have supply chains full of smaller firms. YES Bank can lend to those SMEs, building deeper business ties.
- Employee banking: The workers at these large firms are potential retail customers for loans and deposits.
These links can generate fee income and deepen relationships across clients, suppliers and employees.
Service quality and digital strength matter
Kumar stressed that customers now choose banks based on solutions and service — not just price. He said YES Bank has strong digital tools and transaction banking. Better service helps keep and win customers. That explains why YES Bank’s CASA growth has been stronger than the industry average, he added.
Ratings, funding costs and other benefits
A key advantage of SMBC’s backing is a better credit rating. YES Bank has already seen an upgrade. Kumar said another notch up in ratings will open new business doors: some government agencies and big corporates prefer banks with higher ratings. Better ratings also lower borrowing costs, which helps margins and growth.
Regulatory position and branches
SMBC holds up to a 24.99% stake and is currently a non-promoter investor. Kumar noted regulators allow non-promoter entities to continue operating their own branches in India. SMBC has five branches (including one at GIFT City) and said it doesn’t plan to increase its stake right now.
India–Japan corridor: fresh opportunities
Kumar said YES Bank and SMBC are building ties in the India–Japan corridor. So far there’s no overlap — they operate in different areas — but cooperation is in the early stages and can grow as both sides find complementary business.
The bigger picture: consolidation and scale in Indian banking
Kumar argued that India will likely need larger banks to support big growth plans. In the public sector, we’ve seen consolidation. For private banks, bringing in the right kind of long-term capital is one route to scale. SMBC’s tie-up with YES Bank is an example of how foreign banks can help build stronger private banking players.
What investors and customers should watch next
- Strategy moves: How YES Bank translates SMBC access into new fee income and corporate deals.
- ROA target: YES Bank aims for 1% ROA by FY27 — track progress.
- Credit rating: Any further rating upgrades would be positive for funding costs.
- SMBC role: Watch how deeply SMBC’s nominees engage in strategy and client introductions.
- Retail traction: Will YES Bank convert corporate employee relationships into loans and deposits?
YES Bank’s deal with SMBC gives the bank a long-term partner, more corporate reach, and a path to faster, steadier growth — if management executes well.
Stay tuned Global India Broadcast News and if LeBron plays, you’re in for a big night.
