Synopsis:
Yes Bank Ltd rallied after the Reserve Bank of India approved Sumitomo Mitsui Banking Corporation’s (SMBC) proposal to acquire up to 24.99 percent stake in the lender.
The private banking sector stock opened strong at its day’s high of Rs. 20.33, hitting a 5.45 percent intraday gain over the previous close of Rs. 19.28. Investor sentiment turned positive following regulatory approval for a large foreign strategic investment.
Yes Bank Ltd, with a market capitalisation of Rs. 61,923 crore, witnessed its shares open at the intraday high of Rs. 20.33, compared to the previous closing price of Rs. 19.28. The move marked a 5.45 percent increase, with the stock trading actively in anticipation of the incoming strategic stake acquisition.
What’s the News?
The Reserve Bank of India has granted approval to Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99 percent of YES Bank’s paid-up share capital and voting rights. This follows the proposed transaction announced in May 2025, under which SMBC intended to acquire 20 percent of the bank’s stake through a secondary stake purchase — 13.19 percent from State Bank of India and 6.81 percent from seven other financial institutions, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
As per the RBI’s communication dated August 22, 2025, the approval is valid for one year and clarifies that SMBC will not be treated as a promoter of the bank post-acquisition. The nod is subject to compliance with provisions of the Banking Regulation Act, 1949, RBI’s master direction and guidelines on acquisition of shares and voting rights in banking companies, FEMA Act, 1999 and other applicable laws.
Further, the proposed transaction requires clearance from the Competition Commission of India along with other customary conditions and lock-in stipulations before consummation.
Also read: Micro cap stock jumps 9% after securing supply order from Garden Reach Shipbuilders & Engineers
Financial Snapshot
On a quarter-on-quarter basis, revenue remained broadly flat, dipping slightly from Rs. 7,623 crore to Rs. 7,605 crore. Net profit rose from Rs. 745 crore to Rs. 809 crore, reflecting an 8.6 percent increase. Profit before tax improved from Rs. 1,006 crore to Rs. 1,085 crore, up 7.8 percent, while financing losses narrowed from Rs. 809 crore to Rs. 740 crore, marking an 8.5 percent improvement.
On a year-on-year basis, revenue declined 1.6 percent from Rs. 7,725 crore to Rs. 7,605 crore. Profit before tax surged 57 percent from Rs. 691 crore to Rs. 1,085 crore, and net profit climbed 56.7 percent from Rs. 516 crore to Rs. 809 crore. Financing losses, however, widened from Rs. 580 crore to Rs. 740 crore. As of March 2025, the bank’s debt had reduced to Rs. 71,971 crore compared to Rs. 80,508 crore a year earlier, while net cash flows turned positive at Rs. 9,249 crore.
About the Company
Founded in 2003 and headquartered in Mumbai, YES Bank is a full-service commercial bank catering to Retail, MSME, and Corporate clients. It offers a wide range of banking and digital financial solutions, including deposits, loans, trade finance, cash management, and foreign currency loans.
The bank’s subsidiary, YES Securities, operates its brokerage and investment services. With a strong pan-India branch presence, an International Banking Unit at GIFT City, and a Representative Office in Abu Dhabi, the bank maintains both domestic and international reach.
Written by -Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
