Yes Bank Jumps 8% to 3-Month High Amid Stake Sale Talks with SBI

Yes Bank Stock Rallies to 3-Month High on Stake Sale Buzz

Shares of Yes Bank jumped over 8% on May 9, hitting a three-month high, after reports surfaced that both Yes Bank’s board and State Bank of India (SBI) were holding separate meetings to deliberate on a stake sale to Japan’s Sumitomo Mitsui Banking Corporation (SMBC). The development comes after earlier exploratory talks in 2024 stalled, but the Japanese conglomerate is now reportedly back in contention to acquire a controlling stake in the private lender.

According to The Economic Times and Moneycontrol sources, SMBC could inject fresh capital worth 6–7% stake and might also initiate an open offer, potentially taking its total holding to 51% in the bank. The deal, if finalized, could mark one of the largest foreign takeovers in India’s banking sector, subject to regulatory clearance from the Reserve Bank of India (RBI).

Highlights:

• Yes Bank stock rallies 8% to Rs 27.65 on stake sale reports.

• SMBC may acquire 51% via capital infusion and open offer.

• Boards of Yes Bank and SBI meet separately to discuss terms.

SBI Considers 20% Stake Offload, Seeks Regulatory Pathway

SBI currently holds a 23.97% stake in Yes Bank and may sell up to 20% of its holding to SMBC. If executed, the sale could significantly reduce SBI’s exposure, which it had assumed during the lender’s crisis-driven restructuring in 2020. Sources told Moneycontrol that once SMBC reverts positively to proposed shareholding and governance terms, the deal will be forwarded to regulators for formal vetting.

Other institutional shareholders in Yes Bank include Axis Bank, Kotak Mahindra Bank, ICICI Bank, and HDFC Bank, who together own 7.36%, while Advent International and Carlyle hold 9.2% and 6.84%, respectively. LIC also maintains a 3.98% stake in the bank. If SMBC’s entry is cleared, it could bring in significant capital strength and strategic direction, potentially altering the control structure and governance dynamics at the bank.

Highlights:

• SBI may offload up to 20% of Yes Bank stake to SMBC.

• Advent, Carlyle, LIC, and other banks hold significant minority stakes.

• Deal subject to RBI scrutiny and regulatory compliance.

Revival Hopes Rise, But Year-to-Date Performance Remains Subdued

Despite today’s rally, Yes Bank shares are only up 14% over the past month, and have declined marginally in 2025 year-to-date. The possible acquisition by SMBC could act as a major catalyst for long-term investor sentiment if backed by a credible turnaround plan, improved asset quality, and operational clarity under new ownership.

Yes Bank, once considered a high-growth private sector lender, went through a phase of asset deterioration, corporate governance concerns, and capital erosion, before a rescue led by SBI and other institutions. With the bank now stabilised but struggling for growth momentum, a strong foreign partner like SMBC could enable a strategic pivot, capital enhancement, and better access to international funding channels.

Highlights:

• Yes Bank stock up 14% in one month but still flat in 2025.

• SMBC’s control could signal long-term revival, global integration.

• Market awaits clarity on deal structure, RBI stance, and open offer terms.