Yes Bank shares up 5% today: Here we decode why
What's the story
Yes Bank's share price jumped nearly 5% today, hitting an intraday high of ₹20.2 per share. The spike comes after the Reserve Bank of India (RBI) approved a stake acquisition by Japan's Sumitomo Mitsui Banking Corporation (SMBC). The approval allows SMBC to acquire up to a 24.99% stake in the private lender's paid-up share capital and voting rights.
Approval details
SMBC to acquire significant minority stake
Yes Bank confirmed the RBI's approval on Saturday, noting that it pertains to SMBC acquiring a significant minority stake. However, the central bank clarified that SMBC won't be considered a promoter of Yes Bank post-transaction. The approval is valid for one year from August 22, 2025, as per Yes Bank's regulatory filing.
Acquisition plan
How SMBC plans to raise stake
SMBC plans to raise its stake in Yes Bank through a secondary market acquisition. The deal involves purchasing a 13.19% stake from the State Bank of India and an additional 6.81% from seven other shareholders. They are Axis Bank, Bandhan Bank, ICICI Bank, Federal Bank, HDFC Bank, IDFC First Bank, and Kotak Mahindra Bank.
Market performance
A look at the stock performance
Over the last year, Yes Bank shares have been highly volatile. The stock has gained over 3% in the last five trading sessions and 11% in six months. However, it has also fallen nearly 18% in a year.