Latest news with #PrashantKumar
Economic Times
4 hours ago
- Business
- Economic Times
Yes Bank awaits SMBC entry for top deck recast
Mumbai: Succession planning at Yes Bank, where Sumitomo Mitsubishi Banking Corp (SMBC) has entered into binding deals to buy at least 20% equity, will get a clearer shape once the stake purchase by the Japanese investor is concluded, Prashant Kumar, Yes Bank's managing director and chief executive officer, told ET in an interview."We had applied for a six-month extension (for the current leadership), and the thought process is that since the new investors will be joining the board, they should have an opportunity, and the board can collectively discuss and decide the best way forward," Kumar tenure has been extended by the regulator for a period of six months with effect from October. He also said SMBC had already applied to the Reserve Bank of India (RBI) to acquire a 20% stake from SBI and other banks that came together to bail out the private lender five years ago, after the regulator had ordered its board to be superseded just before the Covid lockdowns. SMBC has already applied to the antitrust regulator, the Competition Commission of India (CCI), for buying the Yes Bank stake, Kumar said. "They (SMBC) have already made an application to the CCI," Kumar said. "We expect once these two approvals come, then this transaction would be finalised."The Japanese lender's initial application to the RBI was itself for buying 25% ownership, allowing SMBC to immediately increase stake further once the regulatory approvals are in place, ET reported on July Demand, NIMs Separately, Kumar said the September quarter would be the most challenging for the banking sector as credit growth remains sluggish and the full impact of the repo rate cut begins to flow through the system, weighing on margins. "Q2 would be the toughest quarter for the entire banking industry, because the 50-bps rate cut would lead to repricing of the entire loan book linked to external benchmarks, though deposits will take some time to reprice," Kumar said. "Quarter three onwards I think it would stabilise, if there is no further rate cut." Sixty percent of Yes Bank's loan book is linked to external benchmarks, 10% to the marginal cost of funds-based lending rate (MCLR), and the remaining 30% comprises fixed-rate loans. Kumar also expressed concern over weak credit demand in the economy. The bank's advances grew at a modest 5% in the June quarter, while deposits rose by 4%."Demand (credit) is low, corporates are either accessing the debt or the overseas market, they have a good balance sheet, they are sitting with the cash, so reliance on the bank loans have come down on the corporate side," he said.
Time of India
10 hours ago
- Business
- Time of India
Yes Bank awaits SMBC entry for top deck recast
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Mumbai: Succession planning at Yes Bank, where Sumitomo Mitsubishi Banking Corp ( SMBC ) has entered into binding deals to buy at least 20% equity, will get a clearer shape once the stake purchase by the Japanese investor is concluded, Prashant Kumar Yes Bank 's managing director and chief executive officer, told ET in an interview."We had applied for a six-month extension (for the current leadership), and the thought process is that since the new investors will be joining the board, they should have an opportunity, and the board can collectively discuss and decide the best way forward," Kumar tenure has been extended by the regulator for a period of six months with effect from also said SMBC had already applied to the Reserve Bank of India (RBI) to acquire a 20% stake from SBI and other banks that came together to bail out the private lender five years ago, after the regulator had ordered its board to be superseded just before the Covid has already applied to the antitrust regulator, the Competition Commission of India (CCI), for buying the Yes Bank stake, Kumar said."They (SMBC) have already made an application to the CCI," Kumar said. "We expect once these two approvals come, then this transaction would be finalised."The Japanese lender's initial application to the RBI was itself for buying 25% ownership, allowing SMBC to immediately increase stake further once the regulatory approvals are in place, ET reported on July Kumar said the September quarter would be the most challenging for the banking sector as credit growth remains sluggish and the full impact of the repo rate cut begins to flow through the system, weighing on margins."Q2 would be the toughest quarter for the entire banking industry, because the 50-bps rate cut would lead to repricing of the entire loan book linked to external benchmarks, though deposits will take some time to reprice," Kumar said. "Quarter three onwards I think it would stabilise, if there is no further rate cut."Sixty percent of Yes Bank 's loan book is linked to external benchmarks, 10% to the marginal cost of funds-based lending rate (MCLR), and the remaining 30% comprises fixed-rate also expressed concern over weak credit demand in the economy. The bank's advances grew at a modest 5% in the June quarter, while deposits rose by 4%."Demand (credit) is low, corporates are either accessing the debt or the overseas market, they have a good balance sheet, they are sitting with the cash, so reliance on the bank loans have come down on the corporate side," he said.
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
YES Bank share price up 2% as Q1 profit zooms 59% YoY; more details here
YES Bank's share price rose today, buoyed by its strong financial performance in the June quarter of FY2026 (Q1FY26). SI Reporter New Delhi YES Bank share price: Private lender YES Bank share price was in demand on Monday, July 21, 2025, with the scrip rising as much as 2.13 per cent to an intraday high of ₹20.60 per share. At 11:05 AM, YES Bank share price was trading flat at ₹20.17 per share. In comparison, BSE Sensex was trading 0.46 per cent higher at 82,136.48 levels Why did YES Bank share price rise today? YES Bank's share price rose today, buoyed by its strong financial performance in the June quarter of FY2026 (Q1FY26). The lender reported a 59 per cent year-on-year (Y-o-Y) jump in net profit to ₹801 crore in Q1FY26, compared to ₹502 crore in the same quarter last year. On a sequential basis, profit rose 8.5 per cent from ₹738 crore in Q4FY25. The upbeat numbers were driven by a solid rise in both net interest income (NII) and non-interest income. NII, the difference between interest earned and interest expended, grew 5.7 per cent Y-o-Y to ₹2,371 crore, while non-interest income surged 46.1 per cent to ₹1,752 crore. The net interest margin (NIM) held steady at 2.5 per cent for the quarter, unchanged from Q4FY25, indicating stable profitability. Although provisions rose 34 per cent Y-o-Y to ₹284 crore, they declined sequentially, providing some relief to investors. On the asset quality front, the bank maintained stability, with gross non-performing assets (GNPA) ratio flat at 1.60 per cent and net NPA at 0.30 per cent, as of June 30, 2025. In terms of business growth, loans rose 5 per cent Y-o-Y to ₹2.41 trillion and deposits increased 4.1 per cent Y-o-Y to ₹2.75 trillion. The CASA ratio improved to 32.8 per cent, up from 30.8 per cent a year earlier, signalling stronger retail deposit traction. Prashant Kumar, managing director and CEO, YES Bank said, 'The Bank entered the new financial year on a strong footing and delivered a robust performance with net profit rising to ₹801 crore, marking a 59.4 per cent Y-o-Y growth. Key metrics such as RoA (0.8 per cent), PPoP (₹1,358 crore), and NIM (2.5 per cent) showed notable improvement. Asset quality remained stable, CASA witnessed healthy growth, and CET1 strengthened to 14 per cent Other key highlights of the quarter were i) Credit rating upgrades from Moody's, ICRA, and CARE underscore the Bank's solid fundamentals and accelerating growth momentum ii) Sumitomo Mitsui Corporation Bank (SMBC) entered into definitive agreement to acquire about 20 per cent equity stake in YESBANK from SBI & Other Banks.' About YES Bank YES Bank, a private sector bank in India, was established in 2004 and is headquartered in Mumbai. It offers a full range of financial services to individuals, corporates, and MSMEs. The bank's portfolio includes retail banking, corporate banking, investment banking, and digital banking solutions. With a strong focus on technology, YES Bank provides seamless online and mobile banking experiences, supporting a wide customer base across the country. Operating a robust network of branches and ATMs across all states and union territories, the bank has also developed specialised branches such as YES GRACE for women and YES SME for small businesses. Through its subsidiaries—YES Securities and YES Asset Management—the bank offers merchant banking, brokerage, and mutual fund services. Its international footprint includes a presence at GIFT City and a representative office in Abu Dhabi.
Economic Times
3 days ago
- Business
- Economic Times
Corporate loan growth slows as firms prefer capital markets over banks
Indian lenders are finding it increasingly difficult to bring large corporates back into the traditional banking fold as overall credit growth slows and capital markets find favour instead. HDFC Bank reported a 1.7% year-on-year growth in corporate advances for the June quarter, a sharp decline from 18.8% growth in the same period last year. ICICI Bank's domestic corporate loan book expanded by 7.5%, down from 10.3% previously. State-owned Union Bank of India reported a similar trend. Bankers attribute the deceleration in corporate lending to rising competition from funding sources such as the bond and equity markets. The shift has also been amplified by the central bank's ongoing rate cut cycle, which has compressed lending margins for banks. The Reserve Bank of India has reduced the policy repo rate by 100 basis points since February.'Larger corporates are quite liquid, highly rated, and pretty strong on the balance sheet, which means the yield that one could get from that is lower,' said Srinivasan Vaidyanathan, chief financial officer at HDFC Bank. 'And we have seen competition from certain segments of the financial system where the rates are pretty low. It is something that we manage on a close relationship basis with corporates — to participate not just in lending, but as a value proposition.' Lending Margins Low Margins are a key factor too. 'Large corporates always give you very thin margins, so we have been very conscious in terms of growing that book,' said Prashant Kumar, managing director at Yes Bank. 'In large corporates, wherever we see the opportunity to make revenue, we grow there.' In April-June, corporate bond issuances surged to a four-year high of Rs 3.27 lakh crore, according to a Bank of Baroda borrowing cost in terms of the weighted average yield was in the range of 6.85-7.18% for AAA-rated borrowers and 8.28-9.36% for those rated AA. This compares with banks' weighted average lending rate of 9.23%. Raising funds through the capital markets, especially via private placements of corporate bonds, offers more competitive pricing and quicker access compared with the often lengthy and collateral-heavy bank loan process, experts the pricing advantage in the bond market is only for top-rated borrowers and hence bank funding remains crucial for the majority of borrowers. In FY25, AAA-rated firms dominated issuances with a 67.1% share, while those rated below AA accounted for 16%. Banks are also focused on making up for the lower margins through fee income.'Our corporate portfolio is about 20% of our total portfolio — it is doing well,' said Sandeep Batra, executive director at ICICI Bank. 'We saw a decline, which was primarily driven by competitive pricing. We continue to look at these customers on a 360-degree basis and assess the ir total relationship value and the ecosystem's, including the payment solutions that we are able to we take decisions on overall loan pricing.' Batra also said that corporates, especially the better-rated ones, have got multiple choices — with internal accruals as the primary source of funding, followed by the equity market, bonds and bank corporates are increasingly tapping capital markets for cheaper and faster access to funds, which led to a 32.9% surge in resource mobilisation, RBI data showed. Funds raised through the capital markets rose to `15.7 lakh crore at the end of March, compared with Rs 11.8 lakh crore a year earlier. Debt dominated the fundraising mix, with a 63.5% share, almost entirely through private placements, which accounted for 99.2%, while equity contributed 27.4%.
Time of India
3 days ago
- Business
- Time of India
Corporate loan growth slows as firms prefer capital markets over banks
Indian lenders are finding it increasingly difficult to bring large corporates back into the traditional banking fold as overall credit growth slows and capital markets find favour instead. HDFC Bank reported a 1.7% year-on-year growth in corporate advances for the June quarter, a sharp decline from 18.8% growth in the same period last year. ICICI Bank 's domestic corporate loan book expanded by 7.5%, down from 10.3% previously. State-owned Union Bank of India reported a similar trend. Explore courses from Top Institutes in Select a Course Category Bankers attribute the deceleration in corporate lending to rising competition from funding sources such as the bond and equity markets. The shift has also been amplified by the central bank's ongoing rate cut cycle, which has compressed lending margins for banks. The Reserve Bank of India has reduced the policy repo rate by 100 basis points since February. 'Larger corporates are quite liquid, highly rated, and pretty strong on the balance sheet, which means the yield that one could get from that is lower,' said Srinivasan Vaidyanathan, chief financial officer at HDFC Bank. 'And we have seen competition from certain segments of the financial system where the rates are pretty low. It is something that we manage on a close relationship basis with corporates — to participate not just in lending, but as a value proposition.' Live Events Lending Margins Low Margins are a key factor too. 'Large corporates always give you very thin margins, so we have been very conscious in terms of growing that book,' said Prashant Kumar, managing director at Yes Bank . 'In large corporates, wherever we see the opportunity to make revenue, we grow there.' In April-June, corporate bond issuances surged to a four-year high of Rs 3.27 lakh crore, according to a Bank of Baroda report. The borrowing cost in terms of the weighted average yield was in the range of 6.85-7.18% for AAA-rated borrowers and 8.28-9.36% for those rated AA. This compares with banks' weighted average lending rate of 9.23%. Raising funds through the capital markets, especially via private placements of corporate bonds, offers more competitive pricing and quicker access compared with the often lengthy and collateral-heavy bank loan process, experts said. However, the pricing advantage in the bond market is only for top-rated borrowers and hence bank funding remains crucial for the majority of borrowers. In FY25, AAA-rated firms dominated issuances with a 67.1% share, while those rated below AA accounted for 16%. Banks are also focused on making up for the lower margins through fee income. 'Our corporate portfolio is about 20% of our total portfolio — it is doing well,' said Sandeep Batra, executive director at ICICI Bank. 'We saw a decline, which was primarily driven by competitive pricing. We continue to look at these customers on a 360-degree basis and assess the ir total relationship value and the ecosystem's, including the payment solutions that we are able to offer. Accordingly, we take decisions on overall loan pricing.' Batra also said that corporates, especially the better-rated ones, have got multiple choices — with internal accruals as the primary source of funding, followed by the equity market, bonds and bank lending. Indian corporates are increasingly tapping capital markets for cheaper and faster access to funds, which led to a 32.9% surge in resource mobilisation, RBI data showed. Funds raised through the capital markets rose to `15.7 lakh crore at the end of March, compared with Rs 11.8 lakh crore a year earlier. Debt dominated the fundraising mix, with a 63.5% share, almost entirely through private placements, which accounted for 99.2%, while equity contributed 27.4%.
