SMBC to have two nominees on Yes Bank board: MD & CEO Prashant Kumar

Prashant Kumar tells why SMBC has become a strategic investor and the advantages arising from this for Yes Bank
Manojit Saha Subrata Panda Mumbai
Listen to This Article
Japanese financial conglomerate Sumitomo Mitsui Banking Corporation (SMBC) has acquired a 20 per cent stake in Yes Bank from State Bank of India (SBI) and seven private banks for ₹13,482 crore, the largest cross-border banking-sector deal in India, to become its largest shareholder. Prashant Kumar, managing director and chief executive officer, tells Manojit Saha & Subrata Panda on the phone why SMBC has become a strategic investor and the advantages arising from this for Yes Bank. Edited excerpts:
What are the advantages of having SMBC on board?
We were looking for a strategic investor. And this (SMBC) is a strategic

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

an hour ago

• Business Standard

Reliance Infra subsidiary settles ₹273 crore debt obligation to Yes Bank

JR Toll Road Private Limited (JRTR), a wholly owned subsidiary of Anil Ambani-promoted Reliance Infrastructure (R-Infra), has settled the entire outstanding debt obligation of ₹273 crore (including interest) owed to Yes Bank. 'JR Toll Road Private Limited (JRTR), a wholly owned subsidiary of the Company (along with the Company as corporate guarantor), has entered into an addendum to the settlement agreement today with Yes Bank Limited (YBL) for the entire outstanding debt obligation of ₹273 crore (including interest) owed by JRTR to YBL, and has duly paid the entire settlement amount,' R-Infra stated. The company entered into a debt settlement agreement with Yes Bank on Monday (June 23) and has duly paid the entire settlement amount, according to its stock exchange filing. 'The above agreement has also resulted in full settlement/discharge of the Company's obligation as a guarantor for the said loan on behalf of JRTR,' the company added. Earlier, in November 2024, the company had entered into an agreement with the bank to settle the then-debt obligation of ₹271.18 crore (including interest). However, the agreement was terminated in April 2025 due to a delay in payment of the balance settlement amount by JRTR. Since then, JRTR had been in discussions with Yes Bank for an extension of the settlement proposal. Earlier this month, the Bombay High Court directed the Mumbai Metropolitan Region Development Authority (MMRDA) to pay the arbitration award of ₹1,169 crore to Mumbai Metro One Pvt Ltd (MMOPL), another subsidiary of R-Infra. On June 4, the National Company Law Appellate Tribunal (NCLAT) suspended the order passed by the National Company Law Tribunal (NCLT), Mumbai, admitting Reliance Infrastructure into the Corporate Insolvency Resolution Process (CIRP). In 2022, IDBI Trusteeship Services — an operational creditor jointly promoted by IDBI Bank, LIC and GIC of India — filed a plea with the NCLT to initiate insolvency proceedings against R-Infra over an alleged default of ₹88.68 crore (excluding interest).

Business Standard

2 hours ago

• Business Standard

Apple's China supply chain remains strong despite focus on India, SE Asia

China still enjoys dominance in Apple's key supply chain segments, even as the global tech giant's share of electronics manufacturing in the country has dropped from around 70 per cent to 50 per cent over the last seven years amid increasing focus on India and Southeast Asia, a report by a US-based public policy think-tank American Enterprise Institute (AEI) said. According to the report, key supply chain segments, such as printed circuit boards, printing and packaging, molded and mechanical components, and especially precision manufacturing remain predominantly in China, leaving scope for policymakers in countries like India to focus on attracting investment from its suppliers in such manufacturing capabilities. Interestingly, despite this dominance, Chinese-owned firms generally only play a role in lower-value segments of the supply chain. Many of the higher-value components— even those made in China— are produced in factories owned by Japanese, Taiwanese, or US firms, the report said. It indicated that the monopoly of China in electronics manufacturing for Apple is declining over the years. The assembly of all components into a device— the final step in the production process— is referred to as electronics manufacturing or assembly. 'Beginning in 2018, Apple began to shift its electronics manufacturing footprint, presumably driven by the 2018 US tariffs on China. Before 2018, around 60–70 per cent of electronics manufacturing locations were in China, including nearly all final assembly of key devices like iPhones. Today, by contrast, around 50 per cent of Apple facilities are in China, with increased factory share in India and Southeast Asia,' the report said. Of the 17 companies conducting electronics manufacturing in Apple's supply chain, only two are Chinese. Of the 34 electronics manufacturing facilities reported in China, only three are operated by Chinese firms. The report suggests that policymakers in India and countries in Southeast Asia seeking to attract investment and upgrade their manufacturing capabilities have substantial scope to continue attracting suppliers of companies like Apple, in not only basic assembly, but also some of the other component categories. 'The fact that many of these China-based factories are owned by foreign firms facilitates potential supply chain shifts. Moreover, as western electronics firms face higher tariffs, they are looking for more diversified production locations,' it said. The report is authored by Chris Miller, a non-resident senior fellow at the AEI, and Vishnu Venugopalan, a fellow at Harvard University and an Indian Administrative Service officer. It added that the assembly process for devices like phones often only cost around $10, a tiny fraction of its price. Hence, if tariffs lead to a shift in electronics manufacturing, shifting final assembly from China to a different country — without any other changes in its supply chain – will have minimal impact. Interestingly, the US major has diversified the battery ecosystem, which was solely dependent on China and South Korea till 2018, to multiple other countries. 'Today, however, it procures battery components from five different regions, including India and Southeast Asia. While over half of Apple's battery component sourcing locations remain in China, more than 40 per cent of locations are now outside China, representing a significant shift in Apple's production footprint. Notably, the concentration of China-based manufacturing facilities is greater than the share of Chinese firms. As of 2023, there were firms headquartered in Taiwan, South Korea, and Germany in Apple's battery supply chain—more non-Chinese firms (five) than Chinese (four)," it stated. The connectors and cables category involve some low-end products and some that require more high-end, specialty chemicals. 'The enduring position of Japan-based manufacturing in this category illustrates the higher-end manufacturing involved in certain components. Other segments, however, have seen a substantial shift from China to India and the 'other' category, mostly Southeast Asian countries,' it added. Of the nine companies producing products in this category, only one is Chinese. Other firms in this category with China-based manufacturing are American, Taiwanese, or Japanese — companies like Amphenol (US), Japan Aviation Electronics Industry (Japan), Furukawa Electric (Japan), and Hirose Electric (Japan).

India Gazette

5 hours ago

• India Gazette

Hitachi Construction Machinery places India at core of its global strategy

Tokyo [Japan], June 23 (ANI): Toru Takatani, President of the Global Marketing Group at Hitachi Construction Machinery, shared deep insights into the company's longstanding partnership with India and its global vision for the future. Hitachi Construction Machinery, a global leader in the construction equipment sector, especially hydraulic excavators, has been a key player in shaping infrastructure projects across continents. The company's India journey began in 1984, when it initiated a technological collaboration with the Tata Group. This strategic alliance introduced advanced Japanese welding and machine processing technologies to the Indian landscape. What started as a partnership has now evolved into TATA Hitachi Construction Machinery, a flagship brand with manufacturing units in Kharagpur and Dharwad, and a national headquarters in Bangalore. The Bangalore HQ not only handles sales and service operations across the country but also supports a vast fleet of over 40,000 Hitachi machines currently in use throughout India. President Takatani drew a compelling comparison between Japan and India to highlight market potential. 'Japan, with a population of 120 million, has a construction machinery demand of about 22,000 units annually,' he said. 'India, on the other hand, has a population of 1.4 billion but the machinery demand stands at only 27,000 units. The gap shows massive potential for growth.' One of Tata Hitachi's proudest innovations is its unique 'ConSite' system--short for Consolidated Solution for Construction Sites. This digital platform integrates GPS and sensor technology to monitor machine conditions in real time. Through PCs or smartphones, machine status--including operational data, oil levels, and damage reports--can be remotely accessed. Interestingly, President Takatani highlighted that the implementation of ConSite in India was smoother than in many other countries, praising India's robust digital ecosystem. 'This is proof that India is truly an IT Kingdom,' he remarked. Beyond domestic operations, Tata Hitachi's facilities in India serve as a major export hub. Machines tailored for the diverse needs of 15 countries--including those in Southeast Asia, Africa, and the Middle East--are manufactured in India and shipped globally. Recognising India's engineering talent, Hitachi Construction Machinery has established a Research & Development Centre in India. The centre is expected to house 200 engineers, focusing on developing products not just for India, but for the global market--including Japan. While the company has long aligned with the 'Make in India' vision, its current direction reflects a broader ambition: 'Design and Lead from India'. President Takatani emphasised that India is not just a production base, but an innovation and leadership hub in Hitachi's global strategy. With its strong partnership with Tata, focus on digital transformation, and rising role in global manufacturing and R&D, Hitachi Construction Machinery is firmly positioning India at the heart of its international operations. (ANI)