YES BANK, Capital Stack partner on institutional funding

By Milan Rojan

YES BANK has signed a memorandum of understanding (MoU) with institutional capital solutions platform Capital Stack to establish a framework for collaboration aimed at expanding institutional funding across India’s retail and MSME credit ecosystem.

Ashish Thekkekara, Co-founder and Managing Director of Capital Stack, said: “India’s next phase of credit growth will depend on stronger collaboration between capital providers and lending institutions. Together, we aim to create scalable financing solutions that improve market access and strengthen the country’s lending ecosystem.”

The partnership has combined YES BANK’s lending platform with Capital Stack’s origination and transaction structuring capabilities to facilitate the deployment of institutional capital into retail and MSME lending opportunities. Under the agreement, Capital Stack has identified, evaluated, structured and facilitated financing opportunities aligned with the bank’s strategic priorities, while YES BANK has assessed participation based on its internal credit, risk, regulatory and commercial policies.

Sumit Bali, Country Head – Retail Assets and Debt Management at YES BANK, said: “This collaboration reflects YES BANK’s commitment to deepening institutional participation in India’s retail and MSME credit markets. Capital Stack’s origination and structuring expertise complements our lending platform, helping us extend financing to high-quality MSME and retail segments while maintaining disciplined risk standards.”

The collaboration has initially covered financing structures including Direct Assignment (DA), co-lending, term lending, securitisation and structured finance.

The initiative has targeted funding across multiple retail and commercial asset classes, including vehicle finance, affordable housing finance, gold loans, loans against property (LAP), MSME lending, consumer finance, microfinance and supply chain finance. The partners expect the collaboration to improve access to institutional funding for financial institutions and enterprises operating in these segments.

The MoU has established a long-term framework for both organisations to jointly develop institutional capital solutions for India’s evolving credit market.