Yes Bank’s stock experienced a remarkable surge of over 10% at the start of trading on Tuesday, following the announcement that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has secured the green light from the Reserve Bank of India (RBI) to acquire a 51% stake in the bank. Shares opened at ₹19.24, compared to the previous closing price of ₹17.73 on the Bombay Stock Exchange (BSE). The stock soared to an impressive high of ₹19.44, reflecting a 9.64% spike.
SMBC’s Strategic Move
SMBC is exploring two potential strategies for acquiring its stake in Yes Bank. The first option involves initially purchasing less than 26%, followed by a merger through a share swap. Alternatively, the bank could directly acquire up to 26% and subsequently launch an open offer for additional shares. However, it’s important to note that while SMBC aims for a total holding of 51%, its voting rights will be capped at 26% due to RBI regulations.
- Current Stakeholders: The State Bank of India (SBI) and other financial institutions hold a combined 33% stake in Yes Bank.
- Long-Awaited Exit: This acquisition presents a long-awaited exit strategy for SBI and other banks involved in Yes Bank’s 2020 bailout, while simultaneously introducing a strategic foreign investor, which is expected to boost the competitiveness of India’s sixth-largest private sector bank.
Phased Acquisition Plan
SMBC is likely to incrementally increase its stake in Yes Bank, beginning with a partial purchase from existing shareholders, including major players like SBI, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank. Collectively, these institutions own 33.74% of Yes Bank, with SBI holding the most significant share at 23.99%.
Yes Bank’s Recent History
Yes Bank underwent a significant restructuring in 2020 under the supervision of the RBI due to a severe liquidity crisis and regulatory challenges faced by its former CEO, Rana Kapoor. The rescue operation led by SBI and other banks helped stabilize the bank, but it has remained without a formal promoter since Kapoor’s departure in 2019.
Stock Performance Overview
In terms of performance, Yes Bank’s share price has increased by 9% over the past month. However, the stock has experienced a decline of 5% in 2025 and has dropped 22% year-over-year, with a 29% decrease over the last five years. As of 9:30 AM, the share price was trading 5.41% higher at ₹18.69 on the BSE.
This latest development could mark a turning point for Yes Bank, potentially leading to enhanced stability and growth in the coming years.
