Yes Bank’s stock price surged up to 5% to ₹20 in Monday’s trade after the Reserve Bank of India (RBI) granted approval to Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99% stake in the private bank’s paid-up share capital and voting rights.
The stock has been volatile over the past year, slipping nearly 18% in 12 months despite gaining 3% in the last five sessions and 11% in six months.
RBI’s Approval to SMBC
Yes Bank confirmed in a stock exchange filing that RBI has permitted SMBC to acquire a substantial minority stake through secondary purchases. However, the central bank clarified that SMBC will not be treated as a promoter of the bank post-acquisition.
As per the details, the proposed transaction involves:
- 13.19% stake being acquired from State Bank of India (SBI)
- 6.81% stake from seven other lenders: Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank
The regulatory approval, dated August 22, 2025, will remain valid for one year.
Why It Matters
This stake purchase aligns with SMBC’s broader strategy to strengthen its presence in India’s financial sector. While the deal does not change promoter classification, it marks a significant step in deepening global banking participation in India’s private sector lenders.
Yes Bank, which has been navigating a turnaround in recent years, could benefit from the strategic partnership and investor confidence that comes with SMBC’s backing.
Stock Outlook
While the short-term movement reflects investor enthusiasm, analysts suggest monitoring:
- The impact of foreign strategic investments on Yes Bank’s operations
- Valuation trends amid ongoing volatility
- Broader banking sector performance in India