Yes Bank’s share price surged over 2% on Wednesday, following the Competition Commission of India (CCI) approval for Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99% of the private sector bank. Shares rose as much as 2.09% to Rs 19.97 on the Bombay Stock Exchange (BSE).
This development follows last month’s approval from the Reserve Bank of India (RBI), permitting SMBC to acquire the same stake in Yes Bank’s paid-up share capital and voting rights.
Investors are keenly watching the Yes Bank Share Price as market activity intensifies. Once the transaction is completed, SMBC, a subsidiary of Sumitomo Mitsui Financial Group (SMFG), will become the largest shareholder in Yes Bank.
The CCI’s decision to approve the acquisition follows SMBC’s announcement to buy a 20% stake in Yes Bank. The deal includes a 13.19% stake from the State Bank of India (SBI) and 6.81% from other shareholders, including Axis Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. After the transaction, SMBC will become Yes Bank’s single-largest shareholder.
The recent performance of Yes Bank Shares indicates improving investor confidence. SMFG, Japan’s second-largest banking group, with total assets exceeding $2 trillion, maintains a significant global presence. However, the RBI clarified that SMBC will not be classified as a promoter of Yes Bank. Global player SMBC has shown interest in strategic collaboration with Yes Bank.
Yes Bank’s share price has fluctuated in recent months. The stock gained 7% in the last month but has fallen by 4.5% over the past three months.
Year-to-date (YTD), the stock has remained flat, while it has dropped 16% in the last year. However, the stock has rallied 22% in the previous six months, indicating positive investor sentiment.
In its financial performance, Yes Bank reported a 63% year-on-year increase in standalone net profit for the fourth quarter of FY25, reaching Rs 738 crore. For the entire fiscal year, the bank’s net profit doubled to Rs 2,406 crore, signaling growth and stability.
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Following the acquisition, SBI and other institutional investors, who participated in Yes Bank’s 2020 reconstruction, will see their stakes diluted. Currently, SBI holds 24% of Yes Bank, but its share will be reduced to just over 10% after the dilution.
This acquisition by SMBC is expected to bring strategic benefits to Yes Bank, offering long-term stability and enhancing investor confidence. SMBC’s involvement will help strengthen Yes Bank’s position in the Indian banking sector, backed by a leading international banking group.
The CCI Approval marks a significant milestone for the bank’s proposed deals. Overall, the SMBC partnership is expected to reshape Yes Bank’s shareholder structure, positioning it for stronger growth in the future. Analysts believe Yes Bank Stock has potential for steady growth in the coming quarters.