Yes Bank Poised for Balance Sheet Expansion with Support of SMBC Backing

Yes Bank Sees Room for Expansion with Sumitomo Mitsui Banking Corporation's Backing

Mumbai: Yes Bank, a mid-sized lender in India, has ample headroom to expand its balance sheet, according to its new managing director and chief executive officer, Vinay Tonse. Speaking at the bank's earnings call for the March quarter (Q4FY26), Tonse outlined the bank's vision for the next three years, which includes becoming a high-quality, consistently profitable franchise with best-in-class asset quality and strong retail granularity.

The bank is expected to support its growth through its technology platform, leadership in the digital payments ecosystem, and embedded banking capabilities. Tonse stated that the bank will build on its strengths, strengthen areas that require more attention, and pursue growth that is thoughtful, calibrated, and sustainable. In addition, the ongoing collaboration with Sumitomo Mitsui Banking Corporation (SMBC) provides helpful strategic support, particularly in corporate and cross-border banking.

Japan's SMBC Acquires 24.2% Stake in Yes Bank

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Japan's SMBC acquired a 24.2% stake in Yes Bank in September 2025, becoming the largest shareholder in the private sector lender. The partnership is expected to help Yes Bank expand its reach and capabilities.

Yes Bank Reports Strong Q4FY26 Results

Yes Bank posted a net profit of ₹1,068 crore for the March quarter, up 44.7% on year. Net interest income was 15.9% higher at ₹2,638 crore, whereas the net interest margin (NIM) improved 10 basis points sequentially and 20 bps on year to 2.7%. The margin improvement was driven by the repricing of deposits, strong transactions in low-cost current account and savings account (CASA) deposits, and a reduction in high-cost borrowings.

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Total deposits of the bank crossed the ₹3 trillion milestone, touching ₹3.2 trillion as at the end of March, registering a growth of 12% on year and 9% on quarter. CASA deposits grew 15% on year to ₹1.1 trillion, accounting for 35.1% of total deposits.

Advances of the bank were up 11.1% on year and 6.2% on quarter at ₹2.7 trillion as of 31 March, 2026, led by a 20% growth in corporate and institutional banking loans, 14.5% in commercial banking advances, and 4.7% rise in retail loans.

The bank's gross non-performing assets (NPA) ratio improved by 30 bps on year and 20 bps on quarter to 1.3%, while the net NPA ratio improved by 10 bps both sequentially and annually to 0.2%. These were the best asset quality numbers reported by the bank in the last 24 quarters, Tonse said.