Yes Bank Ltd Shares Jumps 3% After SMFG Likely To Invesst $1.1 Bn

The share price of Yes Bank rose over 3 per cent in trade on Tuesday, July 16, after reports started circulating that Sumitomo Mitsui Financial Group (SMFG) is considering an additonal investment of USD 1.1 billion in the private sevtor lender.

The Japanese financial major might also acquire 5 per cent of Yes Bank from US investment fund Carlyle Group and other minority shareholders.

The fresh investment, the Bloomberg report stated would increase the the total investment to USD 2.7 billion, giving SMFG around 25 per cent stake in Yes Bank

This indicates interest from the Tokyo-headquartered financial servies major in India's banking vertical via strategic investments in the south Asian nation's top private lenders.

expanding its footprint in India’s banking sector through strategic investments in one of the country’s leading private lenders.

Also Read: From Delays to Drive-In: Tesla’s India Entry Journey Explained

ICRA Upgrades Yes Bank's Bond ratings: Key Factors Behind This

Credit rating agency ICRA has upgraded Yes Bank’s Infrastructure Bonds and Basel III Tier II Bonds worth Rs 24,460.80 crore to ‘ICRA AA- / Stable’.

The rating upgrade factors in the steady increase in Yes Bank Limited’s (YBL) scale of operations, the improving mix of the loan
book with the growing share of granular loans, and the continued decline in the stressed assets pool, which provides some
stability to the earnings and capital position.

Notably, there has been steady recoveries from the security receipts (SRs), which has aided Yes Bank improvement in overall profitability.

Meanwhile, ICRA expects recoveries to keep supporting the bank’s profitability in the near term while it would continue with its efforts to improve its core operating profitability. ICRA also notes the planned stake acquisition by Sumitomo Mitsui Banking Corporation (SMBC), which will be the single largest shareholder once the required approvals are received.

“The ratings remain supported by the adequate capitalisation and steady deposit growth, though the share of wholesale deposits stays high. The vulnerable book (comprising 31-90 days overdue and the standard restructured book) also declined to ~10% of the overall core capital as on March 31, 2025 from ~21 2 per cent as on March 31, 2024, though it remains monitorable,” according to an official company release. 

Yes Bank Ltd's Q1 FY26 Update

In its provisional update for Q1FY26, Yes Bank reported a quarter-on-quarter decline in both advances and deposits. Loans fell by 2 percent to Rs 2.41 lakh crore, while deposits slipped 3 percent to Rs 2.75 lakh crore. Despite the contraction, the CASA ratio stood at 32.7 percent in June 2025, up from 30.8 percent a year ago, although slightly lower than the 34.3 percent recorded in March 2025.