Yes Bank, SBI, HDFC, ICICI & Other Bank Shares Rally After Rs 12,800 Cr SMBC Stake Sale; Nifty Bank Jumps 3%

Yes Bank Share Price: Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is set to acquire a 20% stake in Yes Bank by purchasing shares from the State Bank of India (SBI) and seven other Indian banks.

The deal is priced at Rs 21.50 per share and is being hailed as the largest cross-border investment in the Indian banking sector.

How Much Will Banks Earn?

Under the agreement, SMBC will buy 6,271 crore equity shares of Yes Bank. SBI will sell 4,134 crore shares, which represent 13.19% of Yes Bank’s equity. At Rs 21.50 per share, SBI is expected to receive approximately Rs 8,289 crore from the deal.

This is a significant return on investment for SBI, which had invested Rs 6,050 crore in Yes Bank during its 2020 restructuring. Even after the sale, SBI will continue to hold over 10% in the bank.

Seven other Indian banks will sell the remaining 2,137 crore shares (6.81% stake): HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank. Together, these banks will earn approximately Rs 4,589 crore from the share sale. The gains for each bank depend on their respective shareholding in Yes Bank.

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Banks' Share Price Zoomed

Shares of several leading banks are soaring after the announcement of the SMBC–Yes Bank deal. Investors cheered the news that Japan’s Sumitomo Mitsui Banking Corporation will acquire a 20% stake in Yes Bank, bringing in a Rs 12,800 crore windfall for SBI and seven other Indian lenders.

ICICI Bank surged 3.48% to Rs 1,437.05, while HDFC Bank rose 3.69% to Rs 1,958.85. SBI gained 3.02%, trading at Rs 802.95, and Kotak Mahindra Bank was up 2.11% at Rs 2,148.10. Axis Bank jumped 3.77% to Rs 1,196.80, and IDFC First Bank rallied 4.18% to Rs 68.98. Federal Bank climbed 3.12% to Rs 193.50, and Bandhan Bank rose 3.92% to Rs 163.10, at 11:45 am.

Yes Bank itself gained 2.50%, trading at Rs 20.50, as the market welcomed SMBC’s strategic investment. SMFG has total assets of around US$2 trillion, with a strong presence across the globe.

The Nifty Bank index rose 2.98%, reflecting overall optimism in the sector. Nifty Private Bank surged 3.12%. Meanwhile, Nifty PSU Bank also climbed 2.54%, supported by a rally in State Bank of India shares. 

What Lies Ahead?

With this deal, Yes Bank is expected to benefit from SMBC’s international banking expertise, better governance, and potential access to global markets.

The transaction still awaits approvals from regulators, including the RBI and the Competition Commission of India, but the market has already responded positively to the announcement.