Yes Bank Shares Fall Over 4% After SMBC’s Clarification

Yes Bank shares declined more than 4% on October 17 after Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) clarified that it has no immediate plans to increase its stake in the private bank beyond the current regulatory limit of 24.99%.

SMBC Focused on Board Role, Not Higher Stake

Speaking to Reuters, Rajeev Kannan, Group Executive Officer and Head of SMBC Group’s India division, stated that the Japanese bank’s focus remains on contributing to Yes Bank’s board as its largest shareholder, rather than taking an executive role.

“We are not actively looking at increasing our stake in Yes Bank beyond the regulatory permissible limit of 24.99%,” said Kannan.

He added that the lender aims to support Yes Bank’s growth and governance efforts, ensuring the management executes its plans effectively.

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Yes Bank’s Current Shareholding

Currently, SMBC holds a 24.2% stake in Yes Bank, making it the bank’s largest single shareholder. The clarification came amid market speculation about SMBC’s future investment plans in the Indian lender.

Kannan noted that Yes Bank still has several areas that require attention, and the focus should remain on executing those improvement plans rather than pursuing further stakeholder expansion.

Market Reaction

Following the announcement, Yes Bank’s stock witnessed a sharp decline of over 4%, reflecting investor sentiment around the update. The market had been anticipating potential stake expansion, which now appears unlikely in the near term.

Despite the decline, SMBC reiterated its commitment to remain a long-term strategic partner, contributing through governance and board-level participation.

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