Yes Bank’s stock saw a sharp rally after news broke that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) received consent from the Reserve Bank of India (RBI) to acquire a 51% stake in the private lender. This development marked a crucial turning point in the bank’s ongoing transformation journey, sparking renewed investor interest.
The Yes Bank SMBC stake acquisition signals a strategic shift in ownership, possibly boosting investor confidence and market competitiveness. The stock opened at ₹19.24 on the BSE, climbing nearly 10% in early trade from the previous close of ₹17.73.
RBI’s Green Light: What It Means for Yes Bank
As per a report, SMBC has secured the RBI’s go-ahead to become a majority stakeholder in Yes Bank. However, due to regulatory norms, voting rights will stay capped at 26% even if shareholding increases to 51%. The RBI’s move reflects a calculated decision, balancing stakeholder interests and regulatory stability.
Two acquisition options are on the table: SMBC may initially buy less than 26% and later merge via a share swap or acquire up to 26% outright and then gradually increase holdings.
This phased approach provides strategic flexibility, allowing SMBC to integrate smoothly into India’s banking ecosystem.
Exit Route for SBI, Revival Boost for Yes Bank
The deal also offers a timely exit opportunity for SBI and other Indian banks that helped in the 2020 bailout. SBI currently owns 23.99%, and collectively, top Indian banks hold 33.74% in Yes Bank.
SMBC plans to purchase part of this stake with cash, bringing in fresh capital and a global outlook. With a strong foreign promoter on board, Yes Bank could gain operational efficiency and competitive strength, similar to how Indian IT firms flourish with global partnerships.
Share Price Trends: From Crisis to Recovery?
Post-approval, Yes Bank shares jumped as much as 9.64% to ₹19.44, later settling around ₹18.69. This 10% spike signals renewed investor optimism. However, the stock has dropped 5% in 2025 so far, and has fallen 22% in the past year. Over five years, it’s down 29%, reflecting past struggles.
But with SMBC’s entry, investors are hopeful for a revival. This could be the beginning of a long-term uptrend if operational metrics improve and the bank regains customer trust.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
