YES Bank Ltd.YESBANK₹17.93 +1.13%

India’s private lender Yes Bank saw a sharp rise in its share price today following reports of a significant acquisition deal. Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has reportedly received approval from the Reserve Bank of India (RBI) to acquire a 51% stake in Yes Bank. 

According to reports, SMBC plans to gradually raise its stake in Yes Bank up to 51%. Initially, the Japanese bank may acquire less than 26% and later increase its holding through either a share swap or direct purchase. Although SMBC’s total shareholding may eventually reach 51%, its voting rights will remain capped at 26%, as per RBI guidelines.

To facilitate the transaction, SMBC has appointed JPMorgan as its financial adviser and J Sagar Associates as its legal counsel. The estimated value of the deal is around $1.7 billion.

State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank currently hold a combined 33.74% stake in Yes Bank, with SBI being the largest shareholder at 23.99%.

On 6 May 2025, at market open, the stock jumped by 10% and touched a high of ₹19.44 apiece compared to its previous close of ₹17.73 on the BSE. By 9:30 AM, the stock was trading 5.41% higher at ₹18.69 apiece.

While the RBI’s approval and SMBC’s planned acquisition have sparked short-term excitement, it remains to be seen how the long-term partnership will shape the future of Yes Bank. 

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