Yes Bank Shares Surge 10% As Smbc May Buy 51% Stake; Sbi Among Likely Sellers

Shares of YES Bank climbed 10 per cent successful Tuesday's waste and acquisition amid reports Japan's Sumitomo Mitsui Banking Corp (SMBC) has received nan RBI motion to prime up 51 per cent liking successful nan backstage lender. As per a study by nan Mint, nan woody is weighted astatine $1.7 billion. Business Today could not independently corroborate nan report. There was nary update connected banal exchanges regarding nan same. 

As per nan report, SMBC whitethorn bargain little than 26 per cent liking and do a merger via stock swap. It whitethorn besides bargain up to 26 per cent liking and motorboat unfastened offer, nan Mint reported.

A study by nan ET earlier suggested SMBC was in precocious discussions to acquisition a important liking successful nan sixth-largest backstage slope by assets. This study had suggested a apt triggering of an unfastened connection by SMBC for an further 26 per cent stake. 

Following nan development, YES Bank shares surged 9.64 per cent to deed a precocious of Rs 19.44 connected BSE, trimming nan year-to-date losses to 5 per cent.  The banal is down 22 per cent successful nan past 1 twelvemonth and 30 per cent successful nan past 5 years. 

SBI shares, connected nan different hand, were trading 0.79 per cent little astatine Rs 783.75 connected BSE.

It is worthy recalling that akin reports surfaced past year. At nan time, it was reported that Japanese lender SMBC and Dubai-based Emirates NBD were successful precocious discussions to get a mostly liking successful YES Bank. SMBC is simply a subsidiary of Sumitomo Mitsui Financial Group, Japan’s second-largest banking institution. However, it was understood that nan banking regulator had not yet granted definitive ‘fit and proper’ support and was reportedly resistant to nan thought of a overseas entity acquiring much than a 51 per cent liking successful YES Bank.

SBI, which owned a 24 per cent liking successful YES Bank, was reportedly among nan imaginable sellers. According to The Economic Times, it was unclear which of nan different financial institutions whitethorn take to exit. If a woody materialises and is followed by an unfastened offer, SMBC is expected to go nan single-largest shareholder, nan study stated.

As of March 31, home institutions including Kotak Mahindra Bank, Axis Bank, ICICI Bank, and Life Insurance Corporation of India (LIC) collectively held an 11.34 per cent liking successful YES Bank. Private equity firms Advent International and Carlyle held stakes of 9.2 per cent and 6.84 per cent, respectively, The Economic Times reported.

Published on: May 6, 2025 9:33 AM IST