A private creditor announced at the annual general meeting of shareholders that the exit of Japan's Sumitomo Mitsui Banking Corporation (SMBC) as the largest shareholder has significantly strengthened the institutional position of Yes Bank.
SMBC, which is part of the Sumitomo Mitsui Financial Group and a Globally Systemically Important Bank, owns 24.9 percent of Yes Bank shares. The partnership brings not only capital but also strategic value through improved capabilities in corporate banking, management practices, and risk management, as well as opening access to cross-border business opportunities, as noted by the bank.
Previously, the largest shareholder was the State Bank of India (SBI), which continues to hold 10.8 percent of the bank's shares.
The creditor also highlighted several credit rating upgrades, which serve as independent confirmation of the improvement in the credit profile and governance standards.
The international rating agency Moody's upgraded Yes Bank's long-term issuer rating to Ba1 with a stable outlook, while S&P Global Ratings assigned the bank an initial international issuer credit rating of BB+ also with a stable outlook.
In the domestic market, all rating agencies now assess the bank as AA or higher. CARE Ratings, India Ratings, and CRISIL have assigned Yes Bank an AA+ rating with a stable outlook, and ICRA rated it as AA with a stable outlook.
These changes occur against the backdrop of Yes Bank's efforts to strengthen its franchise and leverage SMBC's global banking capabilities following the Japanese creditor's investment in the bank.