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Toru Nakashima, Toru Nakashima, the global CEO at Japanese financial major Sumitomo Mitsui Banking Corp (SMBC) that acquired 20% of Yes Bank, told employees of the Indian lender at a town hall meeting that SMBC would take the bank to next level of growth and reassured employees on job security, people aware of the town hall discussions told ET. Nakashima conveyed this message to the top management of Yes Bank at the meeting held on October 17 at the Mumbai headquarters of the lender. After the town hall meeting, Nakashima and the top management of Yes Bank met senior Reserve Bank of India (RBI) officials.This was the first address by SMBC's global boss to Yes Bank employees, who had concerns over job losses should the incoming management be focused on cutting costs. Nakashima also added that SMBC aims to bring in its global learning and expertise to the Indian bank.The SMBC chief's assurance to Yes Bank employees on jobs and growth prospectues comes within weeks of the comments by another senior SMBC executive who told a global wire service that the Japanese lender had no intent to raise its stake beyond the 24.99% approved by the RBI.In a recent interaction with Reuters, SMBC group executive officer Rajeev Kannan and head of SMBC group's India division said the Japanese lender is focused on contributing to Yes Bank's growth as its largest shareholder and board member and does not intend to take on an executive role in the lender.Live EventsPeople privy to the development also said SMBC is working on a plan to set up a wholly owned subsidiary and raise stake in the bank, ET reported on June 2. SMBC has also appointed ex-G20 Sherpa Amitabh Kant as its advisor.It is also aiming to improve the business parameters and convert every loss-making branch into a profit-making outlet. Banks in India do not disclose the number of lossmaking branches.The Japanese financial conglomerate paid ₹13,483 crore to acquire a 20% stake from State Bank of India and other private banks.SMBC, a wholly-owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), also received the RBI's approval to acquire another 4.99% stake in the bank. It will have the right to appoint two nominee directors on the board of a private bank, which was founded by Rana Kapoor, ousted in 2019 in the aftermath of alleged loan fraud cases.While most private banks are witnessing high employee attrition, for Yes Bank it reduced to 35.5% in FY25 from 38.2% in previous year.Yes Bank's return on assets is 0.70% lower than the industry average of 1.1-1.2%. The net interest margin-or, the difference between interest earned on loans and investments, and interest paid on liabilities is 2.5%, or much lower than peers.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onyes bankSMBCYes BankCEORBIjob securitySumitomo Mitsui Banking CorpReserve Bank of IndiaState Bank of Indianakashima (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onyes bankSMBCYes BankCEORBIjob securitySumitomo Mitsui Banking CorpReserve Bank of IndiaState Bank of Indianakashima(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
