Yes Bank’s stock fell nearly 4% on Friday after Sumitomo Mitsui Banking Corporation (SMBC) ruled out increasing the group’s stake in the bank beyond 24.99%.
Rajeev Kannan, group executive officer and head of SMBC Group’s India division, told Reuters in an interview that the bank is focused on contributing to Yes Bank’s growth as its largest shareholder and board member, and does not intend to take on an executive role in the lender. “We are not actively looking at increasing our stake in Yes Bank beyond the regulatory permissible limit of 24.99%.”
Investors had expected SMBC to raise its stake in Yes Bank beyond the regulatory threshold, which would have triggered an open offer.
As the news came out, Yes Bank shares, which were trading near their intraday high of Rs 23.23, fell to a low of Rs 22.06, before closing at Rs 22.24, down 88 paise from the previous close.
After SMBC acquired an additional 4.22% stake in the private lender from private equity firm Carlyle in September 2025, Yes Bank’s stock had rallied over the past month, climbing from Rs 21.15 on September 17 to a 52-week high of Rs 24.30 on October 10, fuelled by speculation of a potential open offer from SMBC and optimism about SMBC’s deepening involvement. SMBC currently holds 22.24% in the bank.
Despite the sell-off, market participants view the reaction as a temporary blip. Analysts believe the presence of a strong strategic investor like SMBC augurs well for Yes Bank’s long-term prospects, especially as the lender continues its turnaround journey.
The Street remains optimistic about the bank’s operational trajectory and expects further clarity when it announces Q2 results on Saturday. According to Bloomberg, analysts expect Yes Bank to report a net profit of Rs 725 crore, up 32% year-on-year and 9.5% quarter-on-quarter.