YES Bank Soars 8% as Japan's Sumitomo Group Sets to Acquire 20% Stake

YES Bank Shares Surge Following Major Investment from Sumitomo Group

YES Bank’s stock experienced a notable surge, climbing 8.4% to reach an intra-day high of Rs 21.70 on the National Stock Exchange. This uptick in share price comes on the heels of a significant announcement: Japan’s Sumitomo Group has agreed to acquire a 20% stake in the private lender, marking one of the largest cross-border investments in India’s banking sector.

Sumitomo Group’s Strategic Acquisition

The Sumitomo Mitsui Banking Corporation (SMBC) is set to acquire a 13.19% stake in YES Bank from the State Bank of India (SBI) and an additional 6.8% stake from other financial institutions, including HDFC Bank, Axis Bank, Bandhan Bank, IDFC First Bank, Federal Bank, ICICI Bank, and Kotak Mahindra Bank. Notably, SBI held a 23.97% stake in YES Bank as of March 2025.

Acquisition Details:
- Total Investment: Approximately Rs 13,483 crore.
- Price per Share: Rs 21.50.

In a recent exchange filing dated May 9, 2025, SBI confirmed the approval from the Executive Committee of the Central Board (ECCB) to divest 413,44,04,897 equity shares of YES Bank, equating to around 13.19% of the bank’s shares, to SMBC for a total consideration of approximately Rs 8888.97 crore.

YES Bank’s Impressive Q4 Performance

The financial outlook for YES Bank appears promising, as it reported a remarkable 63.3% year-on-year increase in standalone net profit, hitting Rs 738 crore for Q4 FY25. The net interest income (NII) also rose by 5.7% YoY, amounting to Rs 2,276.3 crore for the last quarter of the fiscal year 2024-25.

Key Financial Metrics:
- Interest Income: Rs 7,616 crore, a 2.3% YoY increase.
- Net Non-Performing Assets (NPA): Down to 0.3% from 0.5% in the previous quarter.
- Gross NPA: Stable at 1.6% for Q4.
- Provisions: Increased by 23% sequentially to Rs 318.1 crore.

Stock Performance Overview

Over the past week, YES Bank’s shares have risen by 9.2%. In the broader context, the stock has delivered a return of nearly 17% over the last month and 3.5% in the past six months. However, despite these recent gains, YES Bank’s share price has seen a decline of 8% over the last year, impacting investor sentiment.

In conclusion, the investment from Sumitomo Group not only boosts YES Bank’s capital but also signals confidence in its growth trajectory. Investors are keenly watching how this partnership will evolve and what it means for the future of YES Bank in the competitive banking landscape of India.