Banking stock under Rs.25 soared 9 percent after Sumitomo Mitsui Banking Corporation announced a Rs.14,000 crore deal to acquire a 20 percent stake. The move triggered strong investor interest, reflecting optimism around the bank’s future prospects and marking a significant shift in its ownership structure.
During Monday’s trading session, shares of Yes Bank Ltd reached an intra-day high of Rs.21.70 per share, rising 8.5 percent from its previous close of Rs.20.02 per share. The shares have retreated since then and are trading at Rs.20.42 per share.
Yes Bank Ltd. witnessed a sharp 9 percent surge in its share price after Japanese financial giant Sumitomo Mitsui Banking Corporation (SMBC) confirmed its plan to acquire a significant 20 percent stake in the private lender for around Rs.14,000 crore.
The acquisition comes at a price of Rs. 21.5 per share, representing a 7.5 percent premium over Yes Bank’s closing price last Friday. Interestingly, the stock had already rallied 10 percent in the prior session amid speculation surrounding the deal.
The transaction will involve the partial exit of a consortium of Indian banks that had stepped in to revive Yes Bank during its 2020 crisis. State Bank of India (SBI), the largest stakeholder, is set to offload a 13 percent stake, fetching over Rs.9,000 crore.
The remaining 7 percent will be divested by other banks such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank. These lenders are expected to earn between Rs. 330 crore and Rs. 1,300 crore, depending on the size of their holdings.
Yes Bank continues to have a significant retail investor presence, with approximately 62 lakh shareholders holding authorized capital of up to Rs.2 lakh. As of the March 2025 quarter, this group collectively owned 22.55 percent of the bank’s equity. The strategic entry of SMBC is being seen as a vote of confidence in Yes Bank’s turnaround story and long-term prospects.
Financial Overview
According to its latest financial results, Yes Bank posted a consolidated revenue of Rs.7,623 crores in Q4 FY25, marking a 2.21 percent increase from Rs.7,458 crores reported in Q4 FY24. The bank’s net profit rose significantly to Rs.745 crores, registering a 59.53 percent jump compared to Rs.467 crores in the corresponding quarter of the previous fiscal.
For FY25, the company reported a revenue of Rs.30,919 crores, marking a 12 percent increase compared to the previous year. The net profit stood at Rs.2,446 crores, reflecting an impressive 90 percent year-on-year growth.
Written by – Siddesh S Raskar
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