The Reserve Bank of India (RBI) has permitted Sumitomo Mitsui Banking Corporation (SMBC) of Japan to increase its stake in Yes Bank from 20% to 24.99%. Following this news, Yes Bank shares surged nearly 5% on Monday morning. Although the initial gains slightly diminished later, investor confidence remained b.
Yes Bank Share: On Monday, August 25, 2025, Yes Bank Limited's shares jumped nearly 5% to reach ₹20.2 levels as soon as the stock market opened. This surge came after the Reserve Bank of India (RBI) approved Japanese bank SMBC (Sumitomo Mitsui Banking Corporation) to increase its stake in Yes Bank to 24.99%. However, this approval will be valid for one year, and SMBC will not be granted promoter status.
RBI's Major Approval
The Reserve Bank of India has permitted SMBC to increase its stake in Yes Bank to 24.99 percent. This approval will remain valid for up to one year. Notably, despite acquiring such a significant stake, SMBC will not be considered the bank's promoter organization. This implies that even with the increased shareholding, there will be no change in the bank's promoter category.
SMBC's Current Stake
In May 2025, SMBC purchased shares on a large scale from the secondary market. During that period, the company acquired a total of 20 percent stake. Of this, 13.19 percent was directly purchased from the State Bank of India. The remaining 6.81 percent stake was acquired from seven other domestic banks, including HDFC Bank, ICICI Bank, Axis Bank, Federal Bank, Kotak Mahindra Bank, Bandhan Bank, and IDFC First Bank. At that time, Yes Bank and its major shareholders had entered into a share purchase agreement with SMBC.
Status of Domestic and Foreign Investors
As of the end of June 2025, domestic banks collectively held a 33.7 percent stake in Yes Bank. The largest shareholding remained with SBI, standing at 23.96 percent. Additionally, among foreign investors, CA Basque Investments held a 4.22 percent stake, and Verventa Holdings held a 9.2 percent stake.
Market Activity
On Monday, when the market opened, Yes Bank's shares touched a high of ₹20.2. This was approximately 4.8 percent above the previous closing price. However, after the initial surge, profit-booking was observed, and the share came down to ₹19.75. By 9:30 AM, the share was maintaining a gain of approximately 2.44 percent.
Performance in Recent Days
Looking at the past six months, Yes Bank's shares have shown continuous strength. During this period, the bank's share has climbed approximately 10.9 percent. Furthermore, the share has closed on a positive note in five out of the last six trading sessions. This trend reflects investor confidence.
Investor Enthusiasm
The RBI's approval is being seen as a positive sign in the market. Investors believe that SMBC's increased stake will strengthen the bank's capital position and aid in business expansion in the future. This is the reason why the share made a b leap as soon as the news surfaced. Although there was a slight decline in the share after the initial surge, the sentiment of traders remains positive for the time being.
