On January 27, 2024, Yes Bank announced that its board has approved the transfer of investment banking and merchant banking businesses from YES Securities (India) Limited (YSIL), its wholly-owned subsidiary, to the bank. The lender mentioned in an exchange filing that YES Securities will surrender its merchant banking license, and the transfer of business will be effective from January 1, 2024.
Yes Bank clarified that this move is part of a broader restructuring initiative aimed at capturing market opportunities. According to the bank, “The transfer of Investment Banking Business and Merchant Banking Business of YSIL to the Bank is being undertaken as a strategic measure to leverage opportunities and optimize growth within the group.”
YSIL has already applied to the Securities and Exchange Board of India (SEBI) to surrender its merchant banking license as of January 11, 2024. The bank stated that YSIL will continue to focus on its core business activities, especially its broking business, and explore cross-selling opportunities to retail clients.
Simultaneously, Yes Bank released its quarterly results, revealing a 350 percent year-on-year increase in Net profit to Rs 231.6 crore in the October-December period. The lender reported that its gross non-performing assets (NPA) remained steady at 2 percent, while net NPA improved to 0.9 percent.
Net interest income (NII) increased 2.3 percent from a year earlier. Operating profit rose 5.4 percent to Rs 864 crore. The bank also reported a 13.2 percent growth in deposits to Rs 2.4 lakh crore from last year. The current and savings account ratio (CASA) saw a slight decline to 29.4 percent in the quarter ended December 31 from 29.7 percent in the year earlier.
