The share price of Yes Bank is up 3% in the early trade today after the Reserve Bank of India cleared the way for Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) to buy a sizeable stake in the private sector bank.
Let’s take a look at the key factors to watch out for this stocks-
RBI nod for SMBC stake purchase
On Saturday (August 23), Yes Bank announced that the RBI has approved SMBC’s plan to acquire up to 24.99% of its paid-up capital and voting rights through a secondary stake purchase.
In addition to this, the central bank clarified that SMBC will not be classified as a promoter despite holding a large minority stake.
“The aforesaid approval granted by RBI is subject to other conditions including compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999 and other applicable laws and terms including lock in, any subsequent transactions being subject to conditions and RBI’s decision, etc.,” Yes Bank said in its filing.
How the stake will be built
The deal traces back to May 9, when Yes Bank’s board cleared a share purchase agreement between State Bank of India and SMBC. Under this agreement, SMBC will acquire 13.19% directly from SBI, while another 6.81% will come from a group of seven banks, that is, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank. Together, this takes SMBC’s planned holding close to 20%.
Yes Bank added in its latest filing: “We refer to our earlier stock exchange disclosure dated May 09, 2025, informing the stock exchanges of the proposed acquisition by Sumitomo Mitsui Banking Corporation (“SMBC”) of 20.00% shareholding in the Bank through a secondary stake purchase of 13.19% stake from the State Bank of India and an aggregate of 6.81% stake from 7 other shareholders.”
Yes Bank share performance
The share price of Yes Bank has inched up by about 1% in the last five trading sessions. On a one-month basis, the stock is down by nearly 1%. Over the past six months, the share price has risen around 8%, but on a yearly basis, it has declined by 20%. So far in 2025, the stock has slipped close to 2%.
Yes Bank’s market capitalisation currently stands at Rs 60,450 crore. The stock’s 52-week high is Rs 24.85, while the 52-week low is Rs 16.02.