Yes Bank shares jumped significantly after reports of a possible acquisition by Japan’s Sumitomo Mitsui Banking Corp (SMBC) surfaced in the media.
Yes Bank Shares Surge
Sumitomo Mitsui is reportedly planning to acquire a significant stake in Yes Bank, marking a major foreign interest in the Indian private banking sector.
SMBC Plans Major Stake Buy
Yes Bank shares rose over 5 percent in early trade, reaching a high of Rs 19.44 from the previous close of Rs 17.73.
Share Price Reacts
RBI's Green Signal
Reports claim that the Reserve Bank of India has given approval for SMBC to buy up to a 26 percent stake in Yes Bank initially.
Two Deal Scenarios
SMBC could either directly buy 26 percent or start with a smaller stake and later merge with Yes Bank via a share swap arrangement.
Global Interest Builds
Over the past year, several Japanese and Middle Eastern banks have shown interest in acquiring Yes Bank, signaling global confidence in its turnaround.
Flashback to 2020 Crisis
Yes Bank had to be rescued in March 2020 due to governance failures, rising bad loans, and massive deposit withdrawals. SBI led the bailout.
Strong Comeback by 2025
For FY25, Yes Bank reported Rs 2,406 crore net profit, Rs 8,944 crore net interest income, and gross NPAs down to 1.6 percent.
Current Shareholding
SBI holds 23.97 percent, LIC has 3.98 percent, and other Indian banks, PE funds, and foreign investors own the rest of the stake.
No Official Confirmation Yet
So far, SMBC, Yes Bank, and SBI have not issued any official comment. However, the market is closely watching the development.