Yes Bank Rises 5% as RBI Approves SMBC Stake Buy – Investors Take Note

The Reserve Bank of India (RBI) approved Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to a 24.99% stake in Yes Bank. SMBC will purchase shares from existing stakeholders like SBI and other private banks via the secondary market.

Yes Bank shares on Monday (August 25) rallied nearly 5% to touch Rs 20 after the Reserve Bank of India (RBI) gave the green light to Japanese banking giant Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99% stake in the private lender.

The RBI’s nod allows SMBC to pick up the stake through a secondary market deal, but with a clear caveat — the Japanese bank will not be classified as a promoter of Yes Bank after the transaction.

Yes Bank, in its filing, said the approval is valid for one year from August 22, 2025. “We are pleased to inform that SMBC has received the approval of the Reserve Bank of India (RBI) to acquire up to 24.99% of the paid-up share capital/voting rights of the Bank. RBI has further clarified that pursuant to the said acquisition, SMBC would not be treated as a promoter of the Bank,” the statement read.

The proposed deal involves SMBC buying 13.19% from State Bank of India (SBI) and 6.81% from seven other existing shareholders, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

For Yes Bank, the RBI’s clearance comes as a boost at a time when its shares have shown mixed performance. The stock has risen 3% in the last five sessions and 11% over the past six months, but remains down nearly 18% on a one-year basis.