Yes Bank Share Price Rises 4% as SMBC Plans ₹16,000 Crore Infusion

Market Performance

The stock market today witnessed strong movement in Yes Bank shares, with the stock jumping nearly 4% in morning trade on August 29. The rally came after reports suggested that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is set to infuse a massive ₹16,000 crore into the private lender.

Yes Bank shares were trading at around ₹19.41 per share in the morning session. Over the last six months, the stock has gained nearly 16%, reflecting improving investor sentiment.

Main News

According to a report by the Economic Times, SMBC will infuse ₹16,000 crore ($1.83 billion) into Yes Bank. The funding is expected to strengthen the lender’s balance sheet and is being viewed as a step toward SMBC’s deeper ownership in the bank.

The proposed investment is split into:

• ₹7,500 crore through equity infusion (via foreign currency convertible bonds – FCCBs)
• ₹8,500 crore through debt funding (yen-denominated bonds priced below 2%)

This structured deal aims to provide Yes Bank with low-cost, long-term funding, while also boosting its capital position.

Company Details

The investment move comes on the back of SMBC’s earlier commitment of ₹13,500 crore, which is to be paid to Yes Bank’s existing shareholders, including State Bank of India (SBI) and others, for a 20% stake acquisition.

Here’s how the stake deal is structured:

• SBI’s sale: 13.19% stake
• Other shareholders’ sale: 6.81% stake collectively

The transaction will also see stake sales from Axis Bank, Federal Bank, Bandhan Bank, ICICI Bank, HDFC Bank, IDFC First Bank, and Kotak Mahindra Bank.

Earlier this month, Yes Bank confirmed that the Reserve Bank of India granted approval for SMBC to acquire up to 24.99% stake in the lender.

Summary of the Article

• Yes Bank share price surged 4% today, trading near ₹19.41.
• Reports confirm SMBC’s planned ₹16,000 crore infusion into the lender.
• Investment breakdown: ₹7,500 crore equity, ₹8,500 crore debt.
• Comes in addition to ₹13,500 crore payout to Yes Bank’s current shareholders.
• SBI and other banks to dilute stakes in favor of SMBC.
• RBI has already cleared SMBC to acquire up to 24.99% stake in Yes Bank.
• Stock has gained nearly 16% in the past six months.