Yes Bank to leverage SMBC partnership, targets 10-12% credit growth: CEO Prashant Kumar

Mumbai-based private lender Yes Bank plans to strengthen its growth and governance framework following Sumitomo Mitsui Banking Corporation’s (SMBC) investment, said Managing Director and CEO Prashant Kumar.  Speaking on the sidelines of the Global Fintech Fest, he said the deal has been completed and SMBC’s nominee directors have already joined the bank’s board.

“This is a time where we need to see how we can work together and leverage this relationship,” Kumar said, adding that Yes Bank will “continue to move” on its set strategy and deliver results promised to shareholders.



He said SMBC’s more than 24% stake brings two key advantages: clarity on State Bank of India’s shareholding and future capital raising ability. “Any future capital raise of the bank, they are entitled to a similar participation,” he said, describing SMBC as a long-term investor willing to back the bank’s future.

On the bank’s portfolio mix, Kumar said Yes Bank will maintain its current structure with about 60% in retail and SME lending and 40% in corporate loans, balancing “both opportunities and risk distribution.”

He also highlighted plans to invest in wealth management, technology, and distribution networks. “We first need to see how we can invest in a distribution network,” he said, noting that these require long-term funding support.

Also Read | YES Bank's deposits rise 7% to ₹2.97 lakh crore in September 2025; Loans up 6.5%

Kumar said the bank expects steady growth ahead. “Quarter-on-quarter growth on advances is almost 3.9%. For the next two quarters, we are targeting 10–12%,” he said. However, he cautioned that the second quarter may be challenging for net interest margins (NIMs) due to the impact of earlier rate cuts, but expects improvement from the third quarter.

Addressing the bank’s credit quality, he said Yes Bank is being 'more prudent' rather than conservative, ensuring growth does not compromise profitability.

The bank’s market capitalisation stands at ₹69,301 crore, with shares gaining over 2% in the past year.

For the full interview, watch the accompanying video

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