YES Bank Surges 9% – Is a Game-Changing Stake Deal Around the Corner?

Shares of YES Bank witnessed a strong rally on Tuesday, surging 9.6% intraday to touch a high of ₹19.44 on the Bombay Stock Exchange (BSE). The spike in stock price came following reports that Japanese banking giant Sumitomo Mitsui Banking Corporation (SMBC) is in advanced discussions to acquire a significant stake in the private lender.

YES Bank Issues Clarification on Stake Sale Talks

However, YES Bank later issued a regulatory filing stating that the discussions are still preliminary and termed the media reports as speculative.

“The Bank is on a growth trajectory and routinely explores opportunities with various stakeholders, aimed at enhancing shareholder value. However, such discussions are preliminary and do not warrant a disclosure under Regulation 30 of the SEBI Listing Obligations,” said YES Bank in its statement.

Following the clarification, the stock pared some gains and was last seen trading 1.52% higher at ₹18, while the BSE Sensex was up 0.28% at 80,569.52.

SMBC May Acquire 51% Stake, Triggering Open Offer

According to reports, SMBC is likely to acquire up to a 51% stake in YES Bank, which would make it the bank’s largest shareholder. The acquisition, if completed, will also trigger a mandatory open offer for an additional 26% stake, as per Indian regulatory norms.

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The deal is reportedly being coordinated with State Bank of India (SBI), which currently holds a 24% stake in YES Bank. If successful, this would mark SMBC’s biggest investment in India, surpassing its $2 billion acquisition of a 74.9% stake in Fullerton India Credit in 2021.

RBI Gives Verbal Assurance to SMBC

While no formal approval has been made public, reports suggest that the Reserve Bank of India (RBI) has provided verbal assurance to SMBC, allowing it to retain majority economic interest in YES Bank. However, voting rights will remain capped at 26% as per current regulatory norms.

YES Bank Stock Performance: 52-Week Range and Market Cap

• 52-Week High: ₹27.41
• 52-Week Low: ₹16.02
• Current Market Cap: ₹56,566.54 crore
• 1-Year Performance: Down 26%, compared to 9% gain in BSE Sensex

Institutional Shareholders Yet to Clarify Exit Plans

There has been no official word on whether other institutional shareholders — including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, LIC, Carlyle, and Advent International — plan to exit as part of the potential SMBC deal.

About YES Bank

YES Bank is a leading private sector bank in India, offering services across retail, MSME, and corporate banking, along with investment banking, wealth management, and digital payment solutions.