SMBC Share Price in Focus as RBI Clears 24.99% Stake in Yes Bank | Stock Market Today

Mumbai, August 25 – The RBI has given the green light to Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99% in Yes Bank, marking one of the largest foreign investments in India’s banking sector.

The development comes after months of anticipation and has already set the tone for stock market sentiment today, with investors watching SMBC share price and Yes Bank closely.

Market Performance Snapshot

• Yes Bank share price on NSE closed at ₹19.28 on Friday.
• The stock rose 5.8% since May 8, the day before the deal was first revealed.
• The momentum reflects market optimism around the foreign capital infusion and regulatory clarity.

RBI Approval: The Big Development

Yes Bank announced on Saturday that RBI has officially approved SMBC’s proposal to raise its stake in the bank to just under 25%.

• Initial plan: 20% stake for ₹13,482 crore (announced in May).
• Revised request: An additional 4.9% stake sought in July.
• Total approved: 24.99% stake, valid for one year from RBI’s clearance dated August 22, 2025.

This clearance is crucial because RBI has clarified that even after the transaction, SMBC will not be considered a promoter of Yes Bank. At present, the bank remains fully owned by public shareholders with no single promoter.

How the Stake Sale is Structured?

The journey of SMBC’s entry into Yes Bank has unfolded step by step.

• State Bank of India (SBI) to sell 13.19% stake.
• A group of seven lenders — including Axis Bank, Federal Bank, Bandhan Bank,HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank — is set to sell a combined 6.81% stake.
• Balance to be acquired as part of the 20% sale plan.
• The path to 24.99% depends on further acquisitions from existing shareholders.

This deal, valued at ₹13,482 crore for the first tranche, has been described as the largest cross-border investment in India’s banking sector so far.

Context: Yes Bank’s Turnaround Story

Yes Bank has been under the spotlight ever since the 2020 crisis, when RBI superseded its board following a steep deterioration in financial health. A rescue package led by SBI and other banks revived the lender.

Now, five years later, a global financial giant like SMBC stepping in signals a new chapter for Yes Bank. The deal also reflects the regulator’s growing comfort with allowing foreign players to hold significant stakes in Indian banks, as long as caps are respected.

• Voting rights cap: 26% (as per India’s foreign investment norms).
• Financial institutions’ investment cap: 15%.
• Exceptions have been rare – for instance, RBI’s 2020 move when Lakshmi Vilas Bank was merged with DBS Bank India.

What It Means for Governance?

Alongside the equity stake, SMBC will get two seats on Yes Bank’s board.

This inclusion has stirred debate, with proxy advisory firms raising concerns about the Japanese lender’s role in board committees.

• IiAS and SES, two proxy advisory firms, had earlier advised investors to vote against the proposal.
• Still, Yes Bank’s board approved the arrangement, highlighting the need for stronger governance oversight.

Meanwhile, with CEO Prashant Kumar’s term ending in April 2025, the search for a successor is expected to accelerate now that the ownership clarity is in place.

Summary

The RBI nod for SMBC’s 24.99% stake in Yes Bank is more than just a routine regulatory clearance. It reflects India’s changing banking landscape, where foreign capital is increasingly finding space in domestic lenders.

• SMBC share price and Yes Bank stock performance are now firmly in focus for market watchers.
• The ₹13,482 crore investment highlights confidence in India’s private banking sector.
• With governance changes and new leadership on the horizon, Yes Bank’s next chapter may well set the tone for future foreign investments in Indian banks.