Yes Bank Shares Surge Past ₹21, 15% Jump in Two Days. SBI Sells 13.19% Stake to SMBC, Reducing its Holding to 10.8%. What's Next?
Yes Bank Share Price: Yes Bank shares have witnessed a significant surge over the past two days. On Monday, May 12th, the bank's share price crossed the psychological barrier of ₹21. In early trading, the share jumped by over 5%, reaching ₹21.74. This follows a more than 12% surge on Friday. The primary driver behind this surge is SBI's sale of its stake and the entry of Japan's financial company, SMBC.
SBI Sells 13.19% Stake in Yes Bank
The State Bank of India (SBI) recently announced its decision to sell its 13.19% stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC) in a deal valued at approximately ₹8,889 crore. Under this deal, SBI will transfer approximately 413.44 crore shares to SMBC at a price of ₹21.50 per share.
SBI's stake in Yes Bank, which stood at 24% in March 2025, will decrease to approximately 10.8% following this deal. However, the deal's completion is contingent upon SMBC receiving all necessary regulatory and statutory approvals.
The Real Reason Behind Yes Bank's Share Price Surge
The main reason for the surge in Yes Bank's share price is the news of SBI's stake sale coupled with SMBC's participation. Investors are optimistic about SMBC's presence strengthening the bank's financial position. The share closed at ₹20 on Friday, reaching ₹21.74 on Monday, boosting investor confidence.
A Sign of Strategic Shift for SBI
SBI's reduction in its stake is considered a significant strategic decision, indicating that SBI is limiting its role in Yes Bank and providing opportunities for other investors. SMBC's participation is likely to strengthen Yes Bank's international network and capital, potentially improving its financial standing and boosting market confidence.
