Shares of YES Bank jumped 9% on May 12, 2025, after Japan’s Sumitomo Mitsui Banking Corporation (SMBC) announced its decision to acquire a 20% stake in the private lender for ₹13,482 crore.
The deal, which involves State Bank of India (SBI) and seven private banks divesting their shares, has significantly boosted investor confidence in YES Bank. SBI will sell 13.19% of its stake, while HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank will collectively offload 6.81%.
The transaction values YES Bank at ₹67,411 crore, with SMBC purchasing shares at ₹21.50 per unit. Following the announcement, YES Bank’s stock surged to an intraday high of ₹21.74, marking a 36% recovery from its 52-week low of ₹16.02.
Market analysts view this as a strategic win-win—SBI and other investors from the 2020 bailout will realize gains, while YES Bank gains access to global banking expertise, improved risk management, and potential future capital infusion.
Experts believe the deal could be a turning point for YES Bank, which has been working toward financial stability since its 2020 reconstruction. If executed successfully, the transaction may strengthen governance standards and enhance investor confidence in the Indian banking sector.
With YES Bank’s stock rallying and SMBC securing board representation, the deal is expected to reshape the bank’s future trajectory, making it a key player in India’s evolving financial landscape.
