Yes Bank share price skyrockets 10% after reports of acquisition by Japan’s SMBC

Yes Bank share price jumped over 10% in the opening trade on Tuesday after reports that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received approval from the Reserve Bank of India (RBI) to acquire a 51% stake in the private lender. Yes Bank share price opened higher at ₹19.24 apiece as against its previous close of ₹17.73 on the BSE. Yes Bank shares spiked as much as 9.64% to a high of ₹19.44 apiece.

According to a report by Mint, SMBC has secured the RBI’s nod to become a majority stakeholder in Yes Bank. The proposed transaction may value the lender at approximately $1.7 billion, the report said, citing people familiar with the matter.

The Japanese banking major is considering two options: it may either acquire less than 26% initially and subsequently merge with Yes Bank through a share swap, or it could directly acquire up to 26% and make an open offer. While SMBC’s total holding may eventually rise to 51%, its voting rights will remain capped at 26% in accordance with RBI regulations, the report added.

Currently, State Bank of India (SBI) and other lenders hold 33% in Yes Bank.

“RBI has given SMBC the go-ahead for acquiring a majority stake and running Yes Bank,” one of the sources told Mint on condition of anonymity. “This happened a few weeks after SBI and other bank shareholders agreed to sell their stakes in Yes Bank to Sumitomo Mitsui. SMBC will buy up to a 51% stake in Yes Bank at the market price. RBI has to keep every existing stakeholder's interest in mind,” the person said, adding SMBC may pay in cash for the initial stake purchased, the report added.

The deal offers a long-anticipated exit route for SBI and other banks that participated in Yes Bank’s 2020 bailout and introduces a strategic foreign promoter expected to enhance competitiveness at India’s sixth-largest private sector bank.

SMBC is likely to raise its shareholding to 51% in phases, beginning with a partial stake purchase from existing shareholders, including SBI, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank. These institutions collectively own 33.74% of Yes Bank, with SBI holding the largest share at 23.99%

To facilitate the transaction, SMBC has engaged JPMorgan as its financial adviser and J Sagar Associates as legal counsel, another source told Mint.

Yes Bank was restructured in 2020 under the supervision of the RBI after it faced a severe liquidity crisis and regulatory issues under its former promoter and CEO Rana Kapoor. The rescue operation, led by SBI and other banks, helped stabilize the lender, but the bank has remained without a formal promoter since Kapoor’s exit in 2019.

Yes Bank Share Price Performance

Yes Bank share price has rallied 9% in one month, but the stock has fallen 5% in the year 2025 so far. Over the past one year, Yes Bank shares have declined 22%, while it dropped 29% in five years.

At 9:30 AM, Yes Bank share price was trading 5.41% higher at ₹18.69 apiece on the BSE.

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