Shares of Yes Bank Ltd. rose nearly 5% on Monday, August 25, after the Reserve Bank of India (RBI) granted approval to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to increase its stake in the private lender to 24.99%. The approval will remain valid for one year.
Although SMBC may hike its shareholding, it will not be classified as a promoter of the bank. Currently, SMBC holds 20% stake, acquired in May 2025 through a secondary share purchase. This included 13.19% from State Bank of India (SBI) and 6.81% from seven other domestic banks, including HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank, IDFC First Bank, Federal Bank, and Bandhan Bank.
Market Reaction and Recent Performance
On Monday, Yes Bank shares opened with strong momentum, climbing 4.8% to ₹20.2 apiece before paring gains to trade around ₹19.75, still 2.44% higher by 9:30 am. The stock has shown steady performance, gaining in five of the last six sessions and delivering a 10.9% rise over the past six months.
At the end of June 2025, domestic lenders collectively held 33.7% stake in Yes Bank, with SBI as the largest shareholder at 23.96%. Among foreign investors, CA Basque Investments held 4.22%, while Verventa Holdings owned 9.2%.
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Key Insights & Market Update
✔️ RBI nod boosts investor confidence in Yes Bank
✔️ SMBC stake hike could strengthen long-term stability
✔️ Stock momentum continues after recent rally
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