YES Bank shares gain 4% on reports of additional ₹16,000-cr SMBC infusion

YES Bank shares snapped a two-day losing streak and currently trade at 3.5 times the average 30-day trading volume, according to Bloomberg

Shares of YES Bank rose over 4 per cent on Friday following reports that Sumitomo Mitsui Banking Corp (SMBC) may invest an additional ₹16,000 crore in the lender, over and above the ₹13,483 crore investment it proposed earlier this month.

 

The bank's stock rose as much as 4.66 per cent during the day to ₹19.55 per share, the biggest intraday rise since August 25 this year. The stock pared gains to trade 3.8 per cent higher at ₹19.4 apiece, compared to a 0.11 per cent advance in Nifty 50 as of 12:30 PM. 

 

Shares of the company snapped a two-day losing streak and currently trade at 3.5 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 1.2 per cent this year, compared to a 3.7 per cent advance in the benchmark Nifty 50. YES Bank has a total market capitalisation of ₹60,637.30 trillion.  

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SMBC to invest additional ₹16,000-cr in YES Bank 

The Japanese financial giant SMBC is set to inject an additional ₹16,000 crore ($1.83 billion) into YES Bank through a mix of equity and debt, The Economic Times reported. The proposed funding will include ₹8,500 crore raised through yen-denominated bonds carrying an interest rate of below 2 per cent. In addition, ₹7,500 crore will be infused as equity, likely via foreign currency convertible bonds (FCCBs), the report said. 

 

This follows SMBC's earlier commitment of ₹13,500 crore for a 20 per cent stake in YES Bank, largely acquired from existing shareholders led by the State Bank of India (SBI). On August 23, the lender said Reserve Bank of India (RBI) gave its approval to Sumitomo Mitsui Banking Corporation (SMBC) to acquire a 24.99 per cent stake in YES Bank.

 

The acquisition of up to 24.99 per cent stake in YES Bank will create a win-win scenario for both institutions, with the Japanese lender expanding its India presence while YES Bank gains strategic support for growth, analysts said earlier.  

YES Bank Q1 results

The lender reported a 59 per cent year-on-year (Y-o-Y) jump in net profit to ₹801 crore in Q1FY26, compared to ₹502 crore in the same quarter last year. On a sequential basis, profit rose 8.5 per cent from ₹738 crore in Q4FY25. NII, the difference between interest earned and interest expended, grew 5.7 per cent Y-o-Y to ₹2,371 crore, while non-interest income surged 46.1 per cent to ₹1,752 crore. 

 

The net interest margin (NIM) held steady at 2.5 per cent for the quarter, unchanged from Q4FY25, indicating stable profitability. On the asset quality front, the bank maintained stability, with gross non-performing assets (GNPA) ratio flat at 1.60 per cent and net NPA at 0.30 per cent, as of June 30, 2025.