Yes Bank Share Price Jumps After RBI Nod to SMBC, SBI Nominee Directors

Yes Bank shares were back in the spotlight this week as the stock gained nearly 3% intraday, climbing to ₹20.92 apiece on the BSE. The surge came after the private sector lender announced a key regulatory approval that could reshape its governance structure and long-term positioning.

Market Performance

The movement in the Yes Bank share price stood out in a session where the broader Indian stock market showed healthy buying momentum. On Wednesday, the stock rose as much as 2.80% intraday, reflecting renewed investor interest after regulatory clarity on board-level changes.

Such price action often signals how markets respond to institutional interest and high-level approvals, rather than just quarterly results.

The Key Update

Yes Bank informed the exchanges that it has received approval from the Reserve Bank of India (RBI) for the appointment of new nominee directors:

• Two directors nominated by Sumitomo Mitsui Banking Corporation (SMBC)
  
  
• One director nominated by the State Bank of India (SBI)
  
  

These appointments will take effect once the Special Purchase Agreement (SPA) and other associated transactions are completed.

Yes Bank also clarified that the required amendment to the Articles of Association has received the regulator’s green signal.

Company Details – The SMBC Factor

The approval is part of a larger plan where Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is set to become a significant stakeholder in Yes Bank.

Here’s how the stake purchase is structured:

• 20% holding proposed by SMBC
  
  
• 13.19% stake to be acquired from SBI
  
  
• 6.81% stake to be purchased from seven other banks:
  
  
  • Axis Bank
    
    
  • Bandhan Bank
    
    
  • Federal Bank
    
    
  • HDFC Bank
    
    
  • ICICI Bank
    
    
  • IDFC First Bank
    
    
  • Kotak Mahindra Bank
    
    

This secondary stake purchase had already received a go-ahead from the Competition Commission of India (CCI) on September 3, followed by the RBI’s nod in August.

It is worth noting that SMBC is a wholly owned subsidiary of the global financial powerhouse Sumitomo Mitsui Financial Group, Inc. (SMFG).

Why This Matters for Yes Bank

The developments around SMBC and SBI nominee directors are significant for several reasons:

• It strengthens corporate governance with international and domestic representation.
  
  
• It indicates regulatory confidence in Yes Bank’s ongoing turnaround journey.
  
  
• It brings in strategic capital and partnerships at a time when private lenders are competing for retail and SME market share.
  
  

Summary

• Yes Bank share price gained nearly 3% to ₹20.92 amid broader market buying.
  
  
• RBI approved the appointment of two SMBC-nominated directors and one SBI-nominated director to the board.
  
  
• The move follows approvals for SMBC’s proposed 20% stake acquisition, including a 13.19% purchase from SBI and 6.81% from other Indian banks.
  
  
• Both RBI and CCI approvals mark important steps in closing the deal.