Impressive Rally in Share Price
YES Bank shares surged by 8.3% on October 10, hitting a 52-week high of ₹24.30 on the National Stock Exchange. This sharp rise came as investors reacted positively to a series of recent strategic developments. By 12:15 PM, the stock was trading at ₹23.96, up 6.87%.
Steady Growth Over Multiple Timeframes
The stock has shown strong momentum over the past several months:
- 1-month gain: Over 15%
- 3-month surge: Nearly 21%
- 6-month rally: More than 39%
- Year-to-date performance: 22% rise
This consistent growth has placed YES Bank firmly back on investors’ radar.
Strategic Moves Fuel Investor Optimism
Fresh Equity Allotment Through Stock Options
YES Bank’s board approved the allotment of 12,45,046 equity shares on October 7, 2025, following the exercise of employee stock options. This generated a capital infusion of approximately ₹1.67 crore, according to the bank’s latest regulatory filing.
SMBC’s Entry as a Major Investor
In a significant development, the Reserve Bank of India (RBI) granted approval to Sumitomo Mitsui Banking Corporation (SMBC)—one of Japan’s largest banking groups—to acquire up to 24.99% stake in YES Bank.
This includes:
- 13.19% purchase from State Bank of India (SBI)
- 6.81% stake acquired from a group of lenders including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Axis Bank
However, the RBI clarified that SMBC will not be classified as a promoter post-acquisition. The approval is valid for one year, contingent upon compliance with the Banking Regulation Act, FEMA, and CCI clearance.
Stake Realignments Among Lenders
Following RBI’s nod, several banks that held shares in YES Bank have offloaded their stakes to SMBC:
- Bandhan Bank sold 15.39 lakh shares at ₹21.50 each, reducing its stake from 0.70% to 0.21%
- The Federal Bank divested over 16.6 crore shares at the same price point
- SBI completed the transfer of its 13.19% stake to SMBC
These moves signal a significant shift in the bank’s shareholder landscape, with SMBC now holding a substantial stake.
SMBC’s Role and Future Outlook
SMBC is a wholly owned subsidiary of Sumitomo Mitsui Financial Group (SMFG) and one of the leading foreign banks operating in India. Its affiliate, SMFG India Credit Company, is already a major player in the Indian NBFC space.
The strategic partnership is being seen as a turning point for YES Bank, which was rescued in 2020 by a consortium led by SBI during a severe liquidity crisis.
Recovery Under New Leadership
YES Bank CEO Prashant Kumar, a former SBI executive brought in during the crisis, has overseen a remarkable recovery. The bank’s credit rating has improved from ‘D’ to ‘AA-‘, indicating a strong rebound in financial health and investor confidence.
“The presence of a strategic investor, the ability to raise capital, and potential for a rating upgrade have positioned YES Bank on a stronger path,” Kumar said in a recent interview with PTI.
Q2 Earnings Announcement on October 18
Looking ahead, YES Bank’s board is scheduled to meet on October 18, 2025, to review and approve the unaudited financial results for the second quarter (Q2 FY26) and the half-year ending September 30, 2025.
This update is expected to provide further clarity on the bank’s operational performance amid its strategic transformation.
