Shares of Yes Bank rose nearly 5% on August 25 after the private lender said on August 23 that the RBI has accorded approval to Japan-based Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99% stake in the lender.
The development follows May 9, 2025, disclosure of Yes Bank about the SMBC's proposed acquisition of a 20% holding in the lender through a secondary stake purchase of 13.19% stake from the State Bank of India and 6.81% share from seven other shareholders.
Other shareholders are Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.
At 11:10 am on August 25, Yes Bank shares were trading 2.3% higher at Rs 19.71 apiece after hitting an intraday high of Rs 20.2. The 52-week high of the stock is Rs 24.53 and 52-week low is Rs 16.02.
"In this regard, 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," Yes Bank said in a regulatory filing.
This approval is valid for one year from the date of this letter, it added.
The RBI has further clarified that pursuant to the said acquisition, SMBC would not be treated as a promoter of the bank, it said.
The approval granted by the RBI is subject to other conditions, including compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023, (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999.
Besides, it said, other applicable laws and terms, including lock-in, any subsequent transactions being subject to conditions and the RBI's decision, among others, have to be followed.
Further, the proposed transaction is subject to approval from the Competition Commission of India (CCI) and customary conditions precedents as mentioned in the agreements referred to in our intimation dated May 9, 2025, it added.
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