Yes Bank share price rallied as much as 5 per cent to ₹20 in Monday’s trading session after the Reserve Bank of India (RBI) granted approval to Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99 per cent of the private lender’s paid-up share capital and voting rights.
Yes Bank shares remained volatile in last one year. The private lender stock has gained over 3 per cent in last five trading sessions and 11 per cent in six months, however, has descended nearly 18 per cent in one year.
Details on RBI’s approval
Yes Bank announced on Saturday that the Reserve Bank of India (RBI) has approved the Japanese banking giant’s acquisition of a significant minority stake. However, the central bank clarified that SMBC will not be designated as a promoter of Yes Bank after this transaction.
“We refer to our earlier stock exchange disclosure dated May 09, 2025, informing the stock exchanges of the proposed acquisition by Sumitomo Mitsui Banking Corporation (“SMBC”) of 20.00% shareholding in the Bank through a secondary stake purchase of 13.19% stake from the State Bank of India and an aggregate of 6.81% stake from 7 other shareholders of the Bank, i.e., Axis Bank Limited, Bandhan Bank Limited, Federal Bank Limited, HDFC Bank Limited, ICICI Bank Limited, IDFC First Bank Limited and Kotak Mahindra Bank Limited (“Proposed Transaction”),” the comapany said in an exchange filing.
The approval will remain valid for one year starting August 22, 2025, as stated in a regulatory filing by Yes Bank.
This step is part of SMBC’s strategy to increase its stake in the bank to 20% through a secondary market acquisition.
“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 vide letter dated August 22, 2025. This approval is valid for one year from the date of this letter. RBI has further clarified that pursuant to the said acquisition, SMBC would not be treated as a promoter of the Bank,” it added.
The purchase includes a 13.19 per cent stake from State Bank of India and an additional 6.81% from seven other existing shareholders — Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
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