Latest news with #YesBank
Time of India
26 minutes 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banks that came together to bail out the private lender five years ago, after the regulator had ordered its board to be superseded just before the Covid has already applied to the antitrust regulator, the Competition Commission of India (CCI), for buying the Yes Bank stake, Kumar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.
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Business Standard
18 hours ago
- Business
- Business Standard
Best of BS Opinion: In a swirl of crises, who still holds the torch?
There's something surreal about watching the Olympic flame being passed hand to hand, unwavering, even as torrential rain pelts down or gusts of wind try to snuff it out. That torch — symbolising effort, endurance and fragile hope — has to stay alight. And so, often, do we. In a world where each week feels like a relay of upheavals, someone somewhere must clutch the torch. Whether it's a policymaker braving backlash, a pilot navigating public doubt, or a seller trying to keep the algorithm from crushing them. The flame must travel on, however stormy the route. Let's dive in. Private banks are gripping the torch with white-knuckled resolve. As unsecured loans and agri lending turn slippery, Axis and Yes Bank have already stumbled, reporting sharp slippages. Yet the system-wide burn remains faint, for now. As our first editorial notes, the deeper tremor lies in a subtle credit pivot: with big corporations increasingly tapping capital markets, banks may soon be stuck with the riskier borrowers. More risk, fewer returns, while households pile on debt and liquidity flows unchecked. The flame flickers, but regulators must keep it upright. NITI Aayog, meanwhile, is navigating geopolitical gusts. As our second editorial argues, it has recommended letting Chinese firms buy up to 24 per cent in Indian companies without extra clearances. A torchy move, given the fraught 2020 border standoff, but also a pragmatic one. With India's trade deficit with China peaking and FDI flows from Beijing still negligible, this could signal a new openness — though the risks, influence-wise, remain very real. Carrying the flame into darker terrain is A K Bhattacharya, who dissects the troubling investigation into the Ahmedabad Dreamliner crash. The AAIB's hasty, error-ridden probe, minus a Dreamliner pilot no less, has dented public trust. Global scrutiny, aviation opacity, Gujarat's political sensitivity—it's a storm of scrutiny. Yet in this downpour, the need for transparency and technical reform shines brighter than ever. And Kaushik Das writes of a rare weather shift: inflation has dipped to 2.1 per cent, offering momentary relief. But economists urge restraint — torch-bearing is not torch-throwing. The RBI must resist aggressive rate cuts, lest inflation re-ignites with renewed ferocity. Finally, in OTP Please! Online Buyers, Sellers and Gig Workers in South Asia, reviewed by Chintan Girish Modi, Vandana Vasudevan captures the lonely resilience of gig workers and small sellers trying to stay visible, solvent, and sane in a platform-controlled storm. Their struggles of data dominance, algorithmic suppression, and vanishing autonomy are stories of endurance, often in silence. Stay tuned!
Mint
2 days ago
- Business
- Mint
Prepaid credit card: Can it help build your credit score? Find out
Prepaid credit cards, commonly known as loadable credit cards or prepaid cards, have gained notoriety lately, as a viable alternative to banking. But do prepaid credit cards actually boost or lower your credit score? Let's look into this in-depth and how it affects your credit health. To make purchases using a prepaid credit card, you will need to load your prepaid credit card with funds. You are spending your own money, similar to a digital wallet, so it is not credit. It is a prepaid option with some conveniences such as no requirements for a bank account or credit check with all the convenience of tap-to-pay, online shopping, and international acceptance. Prepaid cards have their own cost structure, even if they are convenient: Activation or issuance fee: A one-time fee when acquiring the card. A one-time fee when acquiring the card. Reloads: Fees for online, cash, or bank transfers of money onto the card. Fees for online, cash, or bank transfers of money onto the card. Monthly or annual card maintenance fee: Regular fixed fee to maintain an account. Regular fixed fee to maintain an account. Fees for ATM withdrawals: For cash withdrawals in India and overseas. For cash withdrawals in India and overseas. Inactivity/dormancy fees: Used at times when there isn't any need for a few months. When making your decision on a prepaid card, you should assess the cost structures, as these fees could compromise the convenience of the card. Banks Prepaid credit card variant SBI Bank State Bank Gift Card State Bank EZ Pay Card HDFC Bank Millennia Prepaid Card GiftPlus Card Axis Bank Meal Card Gift Card ICICI Bank Expressions Gift Card PayDirect Card Yes Bank Yes Bank Corporate Gift Card Yes Bank Payroll Card Bank of Baroda Baroda Gift Card Baroda TravelEasy Card (Note: Please visit the bank's official website to learn more about the prepaid card of your choice. It is crucial to choose the one that best meets your needs.) No, your spending habits are not reported to credit bureaus because you are not taking out a loan. No credit history accumulation, there will be no record that your account is active credit. No credit utilisation impact, because there is not a credit line. No payment behaviour impact, either on time or late. Pre-paid cards have therefore no impact in improving or degrading your credit history. Deepak Kumar Jain, Founder and CEO of explained, 'A prepaid card doesn't involve borrowing or credit; it is a card that is preloaded with a certain amount that you can use to pay for travel and other expenses. Once that balance is exhausted, you need to reload it for spending. It's like spending from your wallet or debit card; there is no credit or borrowing involved, so it does not impact the credit score. The uses of prepaid cards are not reported to credit bureaus like CIBIL or Experian, so they will neither help you build or improve your credit score nor impact it negatively.' Prepaid cards have many benefits: Budgeting control: You cannot spend more than what is loaded. You cannot spend more than what is loaded. Great option for online purchases: Increase safety if doing business with unknown vendors. Increase safety if doing business with unknown vendors. No risk of debt: You get the convenience of a card without the risk of credit. You get the convenience of a card without the risk of credit. Great for unbanked or for kids: A financial tool for beginners. For their characteristics they are truly the best option for gifting, travel, and for budgeted purchases. In conclusion, prepaid credit cards can be an excellent alternative for spending options for travel, gifts, and budgeting, but they have no impact on credit scores. Overall, unsecured credit cards with low limits, secured credit cards, and payments made on a regular loan are much better products for individuals who are serious about improving their creditworthiness. For all personal finance updates, visit here. Disclaimer: Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
Mint
3 days ago
- Business
- Mint
Yes Bank share price gains over 2% after Q1 results. Should you buy, sell or hold?
Yes Bank share price gained over 2% in early trade on Monday after the lender reported its Q1 results. Yes Bank shares rallied as much as 2.13% to ₹ 20.60 apiece on the BSE. Yes Bank reported a standalone net profit of ₹ 801 crore in the first quarter of FY26, registering a growth of 59% compared to ₹ 502 crore in the same quarter last year. The bank's net interest income (NII) in Q1FY26 increased by 5.7% year-on-year (YoY) to ₹ 2,371 crore, led by a fall in the cost of funds. Net interest margin (NIM) improved to 2.5%, while operating profit increased by 53.4% YoY to 1,358 crore. Asset quality during the June quarter remained stable, as Gross NPA and Net NPA remained unchanged sequentially at 1.6% and 0.3%, respectively. Provisions in Q1FY26 declined to ₹ 284 crore from ₹ 317 crore, QoQ. Anand Dama, Senior Research Analyst at Emkay Global Financial Services Ltd noted that Yes Bank's core performance remained weak, with credit growth slowing to 5% YoY and down 2.1% QoQ, while margins remained low at 2.5%. 'However, higher treasury gains led to an earnings beat. The bank expects NIM to slip in Q2 due to lending rate cuts. Yes's retail portfolio continues to exhibit stress with a slippage ratio of 2.5%, which we believe has led to management churn. The bank's CET 1 (~13.3%) is sub-par among peers, and would thus call for frequent dilution,' Dama said. Recently, SMBC agreed to acquire a 20% stake in Yes Bank from SBI (13.19% of the 24% sold) and other banks (6.81% of the total 9.7% stake sold) at a sale price of ₹ 21.5 per share (implying 1.3x FY27E ABV). However, the transaction is still pending RBI approval and so the bank has halted its search for a new CEO, he highlighted. Factoring in the Q1 beat, Emkay Global revises up FY26E EPS estimates by 5% and in turn its Yes Bank share price target by 6% to ₹ 17 apiece from ₹ 16. However, the brokerage firm retains a 'Sell' rating on Yes Bank shares, given sub-par growth, return ratios and higher valuations (1.2x FY27E ABV). At 9:30 AM, Yes Bank share price was trading 0.20% higher at ₹ 20.21 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
3 days ago
- Business
- Economic Times
Yes Bank shares in focus after Q1 PAT zooms 59% YoY
Yes Bank reported a 59% YoY jump in Q1FY26 net profit to Rs 801 crore, driven by higher non-interest income and improved NII. Asset quality remained stable, while NIM rose to 2.5%. Technical indicators suggest a potential trend reversal, with analysts projecting a near-term upside towards Rs 21.50–23.00, backed by bullish chart patterns and strong support levels. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Yes Bank are likely to be in focus on Monday, July 21, following the announcement of its strong Q1FY26 results. The private lender reported a 59% year-on-year (YoY) jump in standalone profit after tax (PAT), which stood at Rs 801 crore, compared to Rs 502 crore in the same quarter of the previous financial significant rise in net profit was driven by a combination of higher non-interest income and an improvement in net interest income (NII). Yes Bank reported a 5.7% YoY increase in NII, which came in at Rs 2,371 crore for Q1FY26, aided by a reduction in the cost of funds. On a sequential basis, NII grew by 4.2%.Meanwhile, the bank's non-interest income rose sharply by 46.1% YoY to Rs 1,752 crore, boosted by improved treasury income. Sequentially, non-interest income saw marginal growth of 0.7%.Yes Bank's net interest margin (NIM) for Q1FY26 stood at 2.5%, reflecting an upward trend on a year-on-year (YoY) basis. The improvement was driven by reductions in deposits related to the priority sector lending (PSL) shortfall and savings account (SA) rate cuts, partially offset by repricing interest income for the quarter stood at Rs 7,596 crore, down 1.6% from Rs 7,719 crore reported in the same quarter of the previous year. Interest expenses also declined by 4.6% YoY to Rs 5,224.41 crore, compared to Rs 5,475 crore a year Bank's asset quality remained stable, with improvements seen in both gross non-performing assets (GNPA) and net non-performing assets (NNPA) ratios on a YoY Friday, shares of Yes Bank closed flat at Rs 20.17 on BSE.
