YES Bank Shares Jump 9% as SMBC Reignites Stake Talks with SBI

Market Buzz: YES Bank Shares in Focus

YES Bank shares surged 9% in early trade on May 6, 2025, driven by renewed stake acquisition talks between Sumitomo Mitsui Banking Corporation (SMBC) and State Bank of India (SBI).

• At 10:20 AM, YES Bank shares were trading at ₹18.33 on the NSE, still up 3.4% despite trimming gains.
• The stock pulled back nearly 5% from the day's high after earlier reports about RBI approval were found to be inaccurate.

Strategic Stake Sale Talks Resume

Japanese financial giant SMBC is reportedly discussing acquiring a controlling stake in YES Bank. The move could reshape the Mumbai-based private lender's shareholding structure.

• SBI currently owns a 23.97% stake in YES Bank.
• The public lender is considering selling up to 20% of its holding to SMBC.
• The renewed talks aim to ensure smoother execution, especially around voting rights and control.

This marks a revival of last year's failed discussions with SMBC and Mitsubishi UFJ Financial Group (MUFG), which didn't move forward due to regulatory concerns over voting limits.

Company Shareholding Snapshot

As of March 2025, the ownership of YES Bank was widely distributed among Indian and foreign institutions:

• SBI – 23.97%
• Major institutional stakeholders include ICICI Bank, HDFC Bank, AXIS Bank, Kotak Mahindra Bank, and LIC.
• Vervanta Holdings – 9.2%
• CA Basque Investments – 6.84%
• Retail Investors (up to ₹2 lakh) – 22.55% (approx. 62 lakh individuals)

The potential transaction with SMBC would provide a gradual exit route for the banks intervening during YES Bank's financial crisis in 2020.

Summary

YES Bank shares gained momentum after news surfaced about SMBC rekindling talks with SBI for a majority stake. With SBI and other Indian banks looking to partially offload their holdings, this development could significantly alter the bank's ownership landscape.

The story continues to evolve as stakeholders await further clarity on regulatory permissions and deal structuring. For now, YES Bank shares remain focused on Dalal Street.