Yes Bank Shares Rise as RBI Approves Board Changes; SMBC, SBI to Nominate Directors: Should You Buy or Sell?

Shares of Yes Bank rallied on Wednesday following a significant regulatory approval from the Reserve Bank of India (RBI) that paves the way for strategic changes in the bank's governance structure. The RBI has approved proposed amendments to Yes Bank's Articles of Association, enabling the appointment of nominee directors from its key stakeholders - Sumitomo Mitsui Banking Corporation (SMBC) and the State Bank of India (SBI).

RBI Approves Amendments to Yes Bank's Articles of Association, Allowing Nominee Director Appointments by SMBC and SBI

As per the revised articles, SMBC will now have the right to nominate two directors, while SBI will be entitled to nominate one director to Yes Bank's Board. These board-level appointments will be finalized after the completion of the transactions outlined in the Share Purchase Agreement (SPA) and other associated agreements between the parties.

In a stock exchange filing, Yes Bank stated, "We refer to our earlier stock exchange disclosure dated June 03, 2025, informing the stock exchanges of the proposed amendments to the Articles of Association ('Articles') of the Bank pursuant to the terms of the share purchase agreement dated May 09, 2025 ('SPA'), executed by and amongst the Bank, Sumitomo Mitsui Banking Corporation ('SMBC') and State Bank of India ('SBI')."

The bank further clarified that the implementation of these changes remains subject to the completion of the agreed transactions as stipulated in the SPA.

Regulatory Green Light for SMBC Stake Acquisition

The structural changes come shortly after the Competition Commission of India (CCI) granted clearance on September 3 to SMBC for acquiring up to a 24.99% stake in Yes Bank. The deal had already received RBI approval in August 2025, signaling strong regulatory support for the strategic investment.

In its statement, the CCI said, "The proposed combination relates to the acquisition of share capital and voting rights of Yes Bank by Sumitomo Mitsui Banking Corporation (SMBC)."

Yes Bank Share Price Today

As of 1:27 PM on September 10, shares of Yes Bank Ltd (NSE: YESBANK) were trading at Rs 20.74, marking a gain of Rs 0.40 or 1.97% for the day. The stock opened at Rs 20.46 and touched an intraday high of Rs 20.93, while the lowest price recorded during the session was Rs 20.42. Over the past 52 weeks, Yes Bank's stock has seen a high of Rs 24.41 and a low of Rs 16.02.

Should You Buy or Sell Yes Bank Stock? Check Embay Global's Rating

Analysts at Emkay Global Financial Services have reiterated a 'Sell' rating on Yes Bank, citing rich valuations despite the lender's sub-par core profitability. The brokerage values the stock at 1.2x FY27 adjusted book value, which it considers expensive given low pre-provision operating profit (0.9% of assets), sluggish growth, narrow margins (affected by the Rs 37,000 crore RIDF pool), and high operational costs.

However, Emkay sees a potential turnaround opportunity ahead, driven by a possible leadership change and strategic influence from SMBC, which could support Yes Bank's financial recovery over time.

Strategic Importance of SMBC's Investment in Yes Bank

SMBC is a wholly owned subsidiary of Sumitomo Mitsui Financial Group, Inc. (SMFG) - the second-largest banking group in Japan with total assets exceeding $2 trillion as of December 2024. The group has a significant global presence and is a prominent foreign financial institution in India.

In addition to its banking operations, SMFG operates SMFG India Credit Company, one of the largest and most diversified non-banking financial companies (NBFCs) in India.

The strategic investment by SMBC is expected to strengthen Yes Bank's capital base, enhance its governance framework, and offer significant synergies through international banking expertise and operational collaboration.

SBI Continues to Play a Key Role in Yes Bank's Restructuring

State Bank of India, which played a critical role in Yes Bank's restructuring and revival in 2020, continues to maintain its strategic involvement. SBI's ability to nominate a director ensures that it retains a voice in the bank's long-term governance and direction.