Yes Bank Share Price Jumps Over 2% After RBI Approves SMBC’s 20% Stake Buy From SBI, Axis, ICICI Bank & Others

Shares of Yes Bank witnessed a downturn in late morning trade on Monday, despite an initial 3% surge earlier in the day. The fluctuation in investor sentiment comes on the heels of a key regulatory development, the Reserve Bank of India (RBI) has granted approval to Sumitomo Mitsui Banking Corporation (SMBC) to acquire a significant stake in the private sector lender.

Yes Bank Share Price Today

NSE: YESBANK: As of 9:42 AM on August 25, shares of Yes Bank Ltd were trading at Rs 19.74, up by Rs 0.46 or 2.39% compared to the previous close. The stock opened the day at Rs 20.20, which also marked its intraday high so far, while the lowest price recorded during the morning session was Rs 19.66. Over the past 52 weeks, Yes Bank's share price has touched a high of Rs 24.53 and a low of Rs 16.02.

RBI Approves SMBC's Plan to Acquire 20% Stake in Yes Bank

In a regulatory filing to the stock exchanges, Yes Bank disclosed that the RBI had approved SMBC's proposal to acquire up to 20% shareholding in the bank via secondary market transactions.

The Japanese banking giant plans to buy a 13.19% stake from the State Bank of India (SBI) and an additional 6.81% from seven other private sector banks. These include Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

Yes Bank's filing emphasised that the RBI's approval is valid for a one-year period, starting from August 22, 2025, and is subject to multiple regulatory and statutory conditions. These include compliance with provisions of the Banking Regulation Act, 1949, the Foreign Exchange Management Act, 1999, and RBI's Master Directions on Shareholding in Banking Companies, issued in January 2023 and amended thereafter.

Importantly, the RBI clarified that despite acquiring a sizable stake, SMBC will not be classified as a "promoter" of Yes Bank. This classification holds significance in terms of regulatory obligations, influence on board decisions, and lock-in periods applicable to promoter entities.

"The aforesaid approval granted by RBI is subject to other conditions including compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended from time to time), provisions of the Foreign Exchange Management Act, 1999, and other applicable laws and terms including lock-in, any subsequent transactions being subject to conditions and RBI's decision," Yes Bank said in its filing.

This development is part of SMBC's strategic expansion in India, with the Japanese banking major seeking to deepen its footprint in one of Asia's fastest-growing banking markets. SMBC had earlier partnered with Yes Bank in a business collaboration, and this equity acquisition marks a step forward in their long-term investment strategy.

Yes Bank has been undergoing a multi-year recovery journey after a near-collapse in 2020. The bank's turnaround has involved capital infusions, a change in leadership, asset quality clean-up, and a renewed focus on retail and SME banking. The proposed stake sale to SMBC could be a key milestone in this transformation narrative.