Yes Bank , one of India's prominent private sector banks, has recently made two significant announcements: seeking shareholder approval for six resolutions and releasing a pledge on its stake in CA Basque Investments.

Shareholder Approval for Six Resolutions

Yes Bank has issued a postal ballot notice seeking shareholder approval for six ordinary resolutions. These include:

1. Reappointment of Rama Subramaniam Gandhi as Non-Executive Part-Time Chairman from September 20, 2025 to May 13, 2027, with an annual remuneration of ₹35.00 lakh.

2. Appointment of two nominee directors from Sumitomo Mitsui Banking Corporation - Shinichiro Nishino and Rajeev Veeravalli Kannan.

3. Revised remuneration packages for key executives:

   • MD & CEO Prashant Kumar: ₹4.20 crore fixed pay for FY2025-26 and ₹4.82 crore variable pay for FY2024-25
   • Executive Director Rajan Pental: ₹3.54 crore fixed pay and ₹3.58 crore variable pay
   • Executive Director Manish Jain: ₹3.67 crore fixed pay and ₹1.02 crore variable pay

The e-voting period for these resolutions runs from September 25 to October 24, 2025, with results to be announced by October 28, 2025.

Release of Pledge on CA Basque Investments Stake

In a separate development, Yes Bank has released the pledge on its 4.22% stake in CA Basque Investments. This action involves 1,323,958,760 equity shares of Yes Bank, which were previously held as security.

Background and Context

CA Basque Investments, a shareholder in Yes Bank, had initially created a pledge over 2,143,958,760 equity shares, constituting 6.84% of Yes Bank's issued and paid-up share capital. This pledge was in favor of Catalyst Trusteeship Limited, acting as the onshore security agent for lenders under a loan facility availed by CA Basque Investments.

Implications for Yes Bank

The release of this pledge could have several implications for Yes Bank:

1. Increased Financial Flexibility: By freeing up these shares, Yes Bank may have more options in terms of its investment strategy and capital allocation.

2. Potential for Strategic Moves: The bank might be positioning itself for future corporate actions or restructuring its investment portfolio.

3. Improved Investor Perception: This move could be seen as a positive sign by investors, potentially indicating the bank's strengthening financial position.

Regulatory Compliance

Yes Bank has adhered to regulatory requirements by promptly disclosing this information. The disclosure was made under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, highlighting the bank's commitment to transparency in its financial dealings.

Conclusion

These recent developments at Yes Bank, including the proposed resolutions for shareholder approval and the release of the pledge on its CA Basque Investments stake, represent significant moves in the bank's financial and governance landscape. As the banking sector continues to evolve, such actions can have far-reaching implications for the institution's strategic positioning and financial strength.

Yes Bank has undergone a significant shift in its ownership structure as Japan's Sumitomo Mitsui Banking Corporation (SMBC) becomes its largest shareholder. This development potentially signals a new phase in the Indian private sector lender's strategic direction.

Key Highlights of the Acquisition

• SMBC acquired an additional 4.22% stake in Yes Bank for Rs 8,888.97 crore through an off-market transaction.
• The Japanese banking giant's total holding in Yes Bank increased from 20% to 24.22%.
• SMBC purchased 132.39 crore shares from CA Basque Investments, a Carlyle Group affiliate.
• This acquisition makes SMBC the largest shareholder, overtaking State Bank of India (SBI).

Impact on Shareholding Structure

• State Bank of India (SBI) reduced its stake from 24% to approximately 10% through a partial divestment.
• The transaction reshuffles the top shareholders of Yes Bank, with SMBC now holding the largest stake.

Strategic Implications

Yes Bank plans to leverage SMBC's global network to enhance its services in several key areas:

1. Corporate banking
2. Treasury services
3. Cross-border banking capabilities, particularly for Japan-India trade flows

This strategic partnership could potentially open new avenues for Yes Bank in international markets and strengthen its position in corporate banking.

Financial Performance and Ratings

The acquisition comes at a time when Yes Bank's financial health appears to be improving:

• Four domestic credit rating agencies have assigned Yes Bank AA- ratings, the highest since March 2020.
• This upgrade reflects improvements in the bank's:
  • Capital position
  • Governance
  • Business performance

Market Response

The market responded positively to this development:

• Yes Bank shares closed 0.80% higher at Rs 21.38 on the day of the announcement.

Regulatory Disclosure

According to the LODR (Listing Obligations and Disclosure Requirements) data filed by Yes Bank:

This strategic move by SMBC could potentially bring new expertise and global banking practices to Yes Bank, possibly influencing its future growth trajectory and operational strategies. As the banking sector continues to evolve, this partnership between a major Japanese bank and an Indian private sector lender could set the stage for increased cross-border collaborations in the financial services industry.