YES Bank shares rise after RBI approves SMBC, SBI board nominees under SPA

YES Bank shares rose 1.6 per cent on Thursday, after RBI gave its nod for the nomination of two directors by SMBC and SBI on YES Bank's board

YES Bank shares rose 1.6 per cent on Thursday and logged an intra-day high at ₹21.12 per share on BSE. At 12:56 PM, YES Bank’s share price was trading 1.25 per cent higher at ₹21.04 on BSE. In comparison, the BSE Sensex was up 0.14 per cent at 81,540.19.

 

The market capitalisation of the company stood at ₹66,003.77crore. The 52-week high of the stock was at ₹24.40 per share, and the 52-week low was at ₹16.02.

Why were YES Bank shares in demand?

The buying on the counter came after the Reserve Bank of India (RBI) gave its nod for the nomination of two directors by Sumitomo Mitsui Banking Corporation (SMBC) and State Bank of India (SBI) on YES Bank’s board, upon completion of the transactions outlined in the share purchase agreement (SPA).

 

YES Bank noted that the completion of the deal remains subject to customary conditions precedent detailed in the SPA. The disclosures have also been hosted on the Bank’s website, as per listing regulations.

 

On May 9, 2025, YES Bank’s board approved a SPA between SBI (Seller), SMBC (Purchaser) and the Bank,  for the transfer of equity shares of the Bank from the SBI to the SMBC. 

 

Under the SPA, SMBC agreed to acquire 4,134,404,897 equity shares representing 13.19 per cent of the equity share capital of the Bank from SBI. 

 

Alongside, SMBC also entered into separate SPAs with other lenders — HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank and Bandhan Bank — to purchase a total of 2,130 million shares (6.81 per cent).

 

Following the completion of these transactions, SMBC will hold 20 per cent of YES Bank’s equity capital, while SBI will retain more than 10 per cent ownership.

 

As of June quarter, Axis Bank held 1.01 per cent stake, SBI held 23.96 per cent, Kotak Mahindra Bank held 1.21 per cent, ICICI Bank held 2.39 per cent and HDFC Bank 2.75 per cent. 

 

SMBC is a wholly owned subsidiary of SMFG, which is the second-largest banking group in Japan, with total assets of $2 trillion as of December 2024. SMBC is among the leading foreign banks in India. SMFG's another wholly owned subsidiary, SMFG India Credit, is among the largest diversified non-banking financial companies (NBFCs) in the country.