In a major shift for Yes Bank, the State Bank of India (SBI) has taken the bold step to divest its 13.19% stake in favor of Japan’s Sumitomo Mitsui Banking Corporation (SMBC). This strategic move has sparked a surge in Yes Bank shares, which climbed 10% to close at ₹20.05 on the NSE. Market analysts believe this partnership could be pivotal, transforming Yes Bank into a more globally competitive entity while enhancing its ability to attract international funds.

Impact of SBI and SMBC Partnership

The collaboration between SBI and SMBC is seen as a transformative moment for Yes Bank. Experts assert that this alliance could elevate the bank’s operational standards, aligning it with global governance practices and enhancing its access to international capital.

• Expert Insight: Prashanth Tapse, AVP of Research at Mehta Equities, emphasized that this transaction could introduce "global governance standards and improved risk frameworks," fostering a much-needed turnaround for Yes Bank shares.

The influx of expertise from SMBC is expected to boost investor confidence and facilitate a rally in Yes Bank stocks in the near future.

Stock Performance and Price Predictions

Anshul Jain, Head of Research at Lakshmishree Investments, predicts significant upward movement for Yes Bank shares, noting a breakout above the ₹18.45 resistance level, supported by a dramatic 417% increase in trading volume. He suggests that sustained performance above this level could lead the stock toward the next resistance range of ₹21 to ₹21.50 per share.

• Strategic Advice: Tapse recommends new investors consider buying and holding Yes Bank shares, with potential for prices to reach ₹23 to ₹24 if the stock breaks through the ₹21.50 barrier. Current support has shifted to ₹19.20, and an upward trend appears solidified with the RSI nearing 62–65.

Stake Sale Details

As part of this significant stake sale, SBI will transfer 4,13,44,04,897 shares to SMBC for ₹8,889 crore, setting the share price at ₹21.50 each. Following this transaction, SBI’s stake in Yes Bank will decrease from 23.97% to 10.78%. This move is pending regulatory approvals and is anticipated to finalize within 12 months.

Additional Stake Sales by Major Banks

In addition to SBI’s divestment, several other prominent banks, including HDFC Bank, ICICI Bank, and Kotak Mahindra Bank, are also offloading a combined 6.81% stake in Yes Bank to SMBC. Collectively, these institutions will sell over 2,136,830,297 shares, further solidifying SMBC’s position within Yes Bank.

This strategic divestment follows the 2020 RBI bailout, which saw these banks acquire significant stakes to stabilize the troubled lender. The ongoing restructuring and capital infusion are critical to Yes Bank’s future, positioning it for potential global expansion.

Conclusion

With the backing of SMBC and the backing of major Indian financial institutions, Yes Bank stands at a pivotal juncture. Investors are encouraged to keep an eye on the stock’s performance as it navigates this transformative phase, potentially leading to substantial gains in the coming months.