Yes Bank shares rallied over 4% in early morning trade on Monday after the Reserve Bank of India (RBI) granted approval to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to increase its stake in the private sector lender. As of 9:16 AM, the shares were trading 3.53% higher at Rs 19.96.
In a letter dated August 22, 2025, the RBI permitted SMBC to acquire up to 24.99% of Yes Bank’s paid-up share capital or voting rights. The approval is valid for one year and comes with standard conditions related to compliance under the Banking Regulation Act, FEMA norms, and RBI’s guidelines on ownership in private banks.
This regulatory clearance is a significant milestone in the secondary stake purchase plan announced on May 9, 2025. As part of the transaction, SMBC will acquire a 13.19% stake from State Bank of India and another 6.81% collectively from Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank. Together, this adds up to a 20% stake in Yes Bank, with the RBI’s approval providing headroom to scale the holding further to 24.99%.
The central bank has also clarified that even with the increased stake, SMBC will not be classified as a promoter of Yes Bank.
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