Yes Bank Share Price Rallies as SMBC Picks Up 20% Stake from SBI and Others

Yes Bank's share price has seen a strong upswing, gaining over 14% in the last two sessions, after news broke that Sumitomo Mitsui Banking Corporation (SMBC) will acquire a 20% stake in the Bank.

A large chunk of this stake—13.19%—is coming from the State Bank of India (SBI), which will bring SBI's holding in Yes Bank down to 10%. Other banks are offloading the remaining 6.81%. The deal has generated fresh excitement among investors, thanks to SMBC's reputation as one of the world's top financial institutions.

A Bigger Bet from SMBC?

While this 20% acquisition is already big news, there's talk that SMBC could eventually raise its stake to a majority 51%. That would require regulatory approval, and the RBI is expected to cap voting rights in line with existing rules around foreign ownership in Indian banks. Still, the possibility is creating a lot of buzz in the market.

From Survival to Turnaround

Yes Bank has come a long way since its crisis days. The numbers tell the story:

• Gross NPA has dropped dramatically — from 16.8% in March 2020 to just 1.6% in Q4FY25.
• After posting a massive ₹16,433 crore loss in FY20, the Bank has reported a net profit of ₹2,446 crore for FY25.
• Retail loans have more than doubled, growing 2.5x since March 2020 — a sign that the Bank has regained lending momentum.

These improvements haven't gone unnoticed by investors, especially now with a global partner stepping in.

Technicals Signal More Upside of Yes Bank

From a stock chart perspective, Yes Bank's share price has broken out of a bullish inverse head-and-shoulders pattern, typically seen as a strong indicator of a possible rally. The breakout has come on solid volumes, which adds further weight to the momentum.

What's Next?

With SMBC now on board and Yes Bank showing consistent financial improvement, investor confidence seems to rise. However, the focus now shifts to:

• Whether SMBC follows through with increasing its stake
• RBI's stand on voting rights and ownership caps
• How Yes Bank continues to execute on growth and profitability

After years of uncertainty, Yes Bank seems to be finding its footing again, and the Yes Bank share price is starting to reflect that optimism.