Yes Bank , a prominent Indian private sector bank, has announced significant changes to its investment agreement with Verventa Holdings Limited (VHL), an affiliate of funds advised by Advent. The amendment, approved by YES Bank's board on July 23, 2025, primarily focuses on revising the terms related to VHL's right to nominate a non-executive director to the bank's board.

Key Amendments

The revised agreement introduces several important changes:

1. Director Rotation: The VHL-nominated non-executive director will now be subject to retirement by rotation, replacing the previous provision for a non-retiring director.

2. Alternate Directorship: VHL's rights to appoint an alternate director have been removed.

3. Fall-away Threshold: The threshold for VHL's board nomination rights has been significantly adjusted. Previously, VHL needed to maintain at least 50% of its originally issued securities to retain this right. Under the new terms, VHL must hold at least 5% of YES Bank's total paid-up share capital (on a fully diluted basis) to maintain its nomination rights.

Shareholding and Impact

VHL currently holds a 9.19% stake in YES Bank's paid-up share capital. This amendment aims to align the nomination rights more closely with VHL's ongoing shareholding in the bank.

Regulatory Compliance

YES Bank has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The bank has also confirmed that this transaction does not fall under the category of related party transactions.

Conclusion

This amendment represents a significant shift in the governance structure between YES Bank and one of its major investors. By introducing director rotation and revising the fall-away threshold, the bank appears to be strengthening its corporate governance practices while maintaining strategic investor relationships.

Shareholders and market observers will likely watch closely to see how these changes impact YES Bank's board dynamics and overall corporate governance in the coming months.

Yes Bank , one of India's prominent private sector banks, has announced its strategic plans for credit growth in the coming year. During a recent conference call, the bank outlined its expectations for credit expansion, setting an ambitious target of 12-15% growth.

Focus on Profitable Growth

The bank's management emphasized that this growth target is not just about increasing the loan book size, but is part of a broader strategy focusing on profitable expansion. This approach suggests that Yes Bank is looking to strike a balance between expanding its credit portfolio and maintaining healthy profit margins.

Strategic Implications

The announcement of this credit growth target provides several insights into Yes Bank's current position and future outlook:

1. Confidence in Market Conditions: By setting a double-digit growth target, Yes Bank appears to be expressing confidence in both its own capabilities and the overall economic environment.

2. Quality Over Quantity: The emphasis on profitable growth indicates that the bank is not pursuing expansion at any cost. This strategy could potentially lead to more selective lending practices and a focus on higher-quality assets.

3. Balancing Act: The bank's approach highlights the challenge of maintaining profitability while pursuing significant growth, especially in a competitive banking landscape.

Implications for Stakeholders

For investors and market watchers, this announcement provides a clear benchmark against which to measure Yes Bank's performance in the coming year. The bank's ability to achieve this target while maintaining or improving its profitability will be a key indicator of its operational efficiency and strategic success.

Conclusion

Yes Bank's announcement of a 12-15% credit growth target, coupled with its focus on profitable expansion, signals a strategic approach to growth in a challenging banking environment. As the year progresses, it will be interesting to observe how the bank balances its ambitious growth plans with its commitment to profitability, and how this strategy impacts its market position and financial performance.