YES Bank rises 5% on RBI nod for Sumitomo stake buy; what analysts expect?

YES Bank shares rose 5.4 per cent after RBI approved Japanese bank Sumitomo Mitsui Banking Corporation's acquisition of 24.99 per cent stake; experts see governance boost, operational synergies

YES Bank shares advanced 5.4 per cent on Monday, logging an intra-day high at ₹20.33 per share on BSE. The buying on the counter came after the 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. 

 

In May, SMBC proposed to acquire a 13.19 per cent stake from the State Bank of India and a 6.81 per cent stake from seven other banks, totalling 20 per cent, for ₹13,483 crore.

 

The approval is valid for one year. RBI further clarified that pursuant to the said acquisition, SMBC would not be treated as a promoter of the bank.

 

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As of June 2025, domestic banks collectively held 33.7 per cent of YES Bank. SBI remained the largest single shareholder with a 23.96 per cent stake, while foreign investors CA Basque Investments and Verventa Holdings held 4.22 per cent and 9.2 per cent, respectively.

 

At 9:27 AM, YES Bank’s share price was trading 2.59 per cent higher at ₹19.7 per share. In comparison, BSE Sensex was up 0.29 per cent at 81,546.1. The market capitalisation of the company stood at ₹62,111.67 crore. The 52-week high of the stock was at ₹24.84 per share, and the 52-week low at ₹16.02.

 

In a year, YES bank shares have lost 20 per cent as compared to Sensex’s decline of 0.47 per cent.   CATCH STOCK MARKET UPDATES TODAY LIVE

How will YES Bank benefit from SMBC’s acquisition?

Kranthi Bathini, director - equity strategy, WealthMills Securities, believes higher stakeholding of Sumitomo will add new blood to YES Bank. It will also improve corporate governance and strengthen the bank's finances.

 

He added: There will not be overnight changes, but a steady turnaround in the financial performance can be expected.

 

Sumitomo Mitsui Banking Corporation's 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, according to market analysts.

 

"Sumitomo will get an expanded footprint in India. It has a small presence in India, via a non-banking financial company (NBFC). This move will help to expand BFSI in India," said Nirav Karkera, Head of Research at Fisdom.

 

For YES Bank, the partnership marks a significant transformation from its earlier challenges. "YES Bank was in survival mode. It may have enhanced the capability to expand scale," Karkera noted.

 

The collaboration is expected to bring operational synergies, with YES Bank benefiting from "strong balance sheet and strategic investment" while gaining access to "global best practices."

 

"It will also translate into strong client acquisition due to strong management," Karkera added, highlighting how the combined expertise will drive customer growth for the private lender.