Yes Bank Share Price Today: Banks' Stock Closes 10% Higher As Japan's SMBC Acquires Stake

The shares of Yes Bank saw a sharp rise during Friday's trading session, climbing 10% to hit a high of Rs 20.05, apiece. The stock was last seen higher by 19.86%.

The private lender's shares rose 12.78% in the last five trading days.

What's Fuelling The Rally?

This uptick in the share price is attributed to a stake purchase by Japan's Sumitomo Mitsui Banking Corporation (SMBC).

Yes Bank in a statement said that the private lender is on a growth trajectory and it routinely explores opportunities with various stakeholders.

Japan's SMBC has entered into a definitive agreement on May 9, 2025 to acquire 20% stake in Yes Bank through a purchase of secondary stakes worth 13.9% from SBI and 6.81% aggregate stake from other banks for Rs 13,483 crore at Rs 21.5 per share.

The State Bank of India (SBI) will sell its 13.9% stake for Rs 8,889 crore while the other banks will sell the 6.81% stake for Rs 4,594 crore.

These other banks are Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.

Yes Bank Share Price Today

The shares of Yes Bank on the BSE closed 10% higher at Rs 20.05 apiece, which is the highest level since February 5, 2025.

SBI along with the seven other banks had invested in the Bank as part of the Yes Bank Reconstruction Scheme in March 2020.

Why Is This Transaction So Important For Yes Bank?

"This transaction is the largest cross-border investment in the Indian banking sector. The transaction is subject to the necessary regulatory and statutory approvals including from the Reserve Bank of India and Competition Commission of India and will be subject to customary closing conditions," the bank said in a stock exchange filing.

Prashant Kumar, the Managing Director & Chief Executive Officer of Yes Bank said, "We are excited to welcome SMBC, a globally renowned financial partner, as a major shareholder whose investment marks a pivotal step in our next phase of growth. We expect to benefit from their global expertise and high governance standards. This investment is a powerful endorsement of our transformation journey and future potential. Over the past few years, our growth has been shaped by the strong partnership and unwavering support of SBI and they will continue to remain a valued stakeholder."

Additionally, SMBC, which is a unit of Sumitomo Mitsui Financial Group is also Japan's second-biggest bank.

Therefore, this transaction will drive Yes Bank's next phase of growth, profitability and value creation, and the private lender expects to leverage SMBC's expertise.

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