Yes Bank’s Stock Experiences Notable Surge Amid Potential Stake Sale

In an exciting development for investors, shares of Yes Bank Ltd. witnessed a remarkable increase of 9.64%, climbing to Rs 19.44 per share during early trading on Tuesday. This surge can be attributed to ongoing discussions about a possible stake acquisition by Sumitomo Mitsui Banking Corp. (SMBC), the Japanese banking giant, according to insiders familiar with the negotiations.

Potential Stake Sale and Its Implications

The speculation surrounding this potential transaction indicates that State Bank of India (SBI), Yes Bank’s largest stakeholder, is expected to play a significant role. If completed, this deal could enable SMBC to pursue an open offer, allowing them to secure a majority stake in the private lender.

• Background: Negotiations have been underway since last year, though progress has been stymied by regulatory limitations. These restrictions cap SMBC’s voting rights at 26%, aimed at preventing any single entity from wielding excessive influence over the bank’s operations.

• Strategic Expansion: For SMBC, acquiring a stake in Yes Bank could enhance its footprint in India, building on its existing three branches in the country. Additionally, SMBC already holds a majority share in SMFG Credit India, a non-banking financial entity previously known as Fullerton India Credit Co.

Market Response and Current Trends

As of 9:18 a.m., Yes Bank’s shares settled at Rs 19.03, reflecting a 7.33% increase after peaking earlier in the day. This performance stands in contrast to a modest 0.02% uptick in the NSE Nifty 50 index.

• Year-to-Date Performance: Despite the recent surge, Yes Bank’s stock has experienced a 3.01% decline in 2023 and a more significant 21.08% drop over the past year.

• Trading Volume: Today’s trading volume reached 0.92 times its 30-day average, with the relative strength index standing at 58.17, indicating a potentially bullish trend.

As the situation develops, investors and market watchers will be keen to see how the negotiations unfold and what it could mean for Yes Bank’s future. For those interested in further stock market insights, visit our Stock Market Live updates.

Stay tuned for more updates on this evolving story!