YES Bank shares off highs after rising on Japan's SMBC's talks with SBI for stake acquisition

Over the past 12 months, YES Bank shares have tumbled 22 percent on the bourses .

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26 Aug, 2025 12:21

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Private lender YES Bank Ltd.'s shares galloped over nine percent intraday on Tuesday, May 6, but settled 1.5 percent higher, after Moneycontrol reported that Japanese financial conglomerate Sumitomo Mitsui Banking Corporation (SMBC) is back in the fray to acquire a controlling stake in the Mumbai-based lender. However, by the afternoon session, the stock had erased most morning gains.

State Bank of India (SBI) has reopened talks with SMBC to pick up a controlling stake in the Mumbai headquartered lender, sources told Moneycontrol.

SBI, which holds a 23.97 percent stake in YES Bank, is likely to sell up to 20 percent of its holding to SMBC, said sources.

This potential deal signals an exit route for public lender State Bank of India and other banks that stepped in to rescue Yes Bank in 2020, when the central bank had taken control following a liquidity crisis. In the first phase, banks like Axis Bank, Kotak Mahindra Bank, and HDFC Bank are expected to partially offload shares to SMBC, with more divestment likely in later rounds.

At close, shares of YES Bank  were quoting Rs 17.98 per share on the NSE, higher by 1.4 percent, after trimming intraday gains. Earlier reports, suggesting that the Reserve Bank of India gave its approval to Sumitomo have been deemed 'incorrect', leading YES Bank's shares to pullback from the day's high.

YES Bank clarified that the bank routinely explores  opportunities with various stakeholders, aimed at enhancing shareholder value, and therefore, all discussions are preliminary and do not warrant a disclosure. "The information pertaining discussions speculative at this time, not factually correct," said the lender in a filing with the bourses.

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As of March 2025, SBI held a 24 percent stake in YES Bank, with other key shareholders including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, and LIC. Vervanta Holdings owned 9.2 percent and CA Basque Investments 6.84 percent. Around 62 lakh small retail investors, each holding up to Rs 2 lakh in authorised capital, together owned 22.55 percent.

Some assurances have been extended to SMBC to ensure that the deal sails through smoothly, especially with respect to voting rights and controlling majority, sources said.

Deal talks with Mitsubishi UFJ Financial Group (MUFG), another Japanese player, and SMBC did not fructify last year, as both financial majors were seeking dispensation on voting right limits.

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