Yes Bank shares surge nearly 10% today—What's behind the rally?
What's the story
Yes Bank shares jumped over 9% at market open on Tuesday following reports that Japan's Sumitomo Mitsui Banking Corporation (SMBC) is looking to acquire a controlling stake in the Mumbai-based lender.
The State Bank of India, which currently owns 24% of Yes Bank, is reportedly in discussions to offload up to 20% of its stake to SMBC.
Stakeholder shift
SBI's potential exit and other stakeholders
The proposed deal could also mark an exit for SBI and other banks that came to Yes Bank's rescue during its liquidity crisis in 2020.
Banks including Axis Bank, Kotak Mahindra Bank, and HDFC Bank are likely to partially offload their stakes to SMBC in the first phase of this deal.
More divestment is expected in later rounds as part of this stakeholder reshuffle.
Share distribution
SBI's stake and other key shareholders
As of March 2025, SBI owned a 24% stake in Yes Bank. Other major shareholders include HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, and LIC.
Vervanta Holdings held 9.2%, while CA Basque Investments held 6.84%.
About 62 lakh small retail investors together owned about 22.55%, with each holding up to ₹2 lakh in authorized capital.
Deal discussions
SMBC's assurances and previous failed deal
Assurances have been given to SMBC about voting rights and controlling majority, to ensure smooth execution of the deal.
Last year, talks with another Japanese player Mitsubishi UFJ Financial Group (MUFG) and SMBC didn't materialize as both financial giants sought concessions on voting right limits.
At the time of writing, Yes Bank shares were trading at ₹18.07, reflecting a 2% gain. The stock has risen 7.3% over the past month but remains 13% below its six-month high.