The price of Yes Bank Ltd’s stock surged as much as 8.7% in the early trade today (May 12, 2025). This came on the back of the acquisition deal of the bank via Sumitomo Mitsui Banking Corporation (SMBC), a part of Japan-based Sumitomo Mitsui Financial Group, Inc., the second-largest banking group in Japan. Let’s explore the details of the transaction.
SMBC is acquiring 20% shares of Yes Bank from SBI and others
SMBC has entered into a share purchase agreement to acquire a 20% stake in Yes Bank in a secondary share purchase deal. The deal is expected to be valued at ₹13,483 crore, which will value Yes Bank at ₹67,416 crore.
The deal includes an acquisition of 13.19% stakes worth ₹8,889 crore from the State Bank of India (SBI) and 6.81% stake accounting for ₹4,594 crore, from other shareholder banks, including Axis Bank, Bandhan Bank Limited, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
Following the acquisition, SBI will continue to hold 10.78% stakes in Yes Bank.
For context, SBI and the other seven banks had invested in Yes Bank as part of its reconstruction scheme in March 2020.
As per the agreement disclosed by the bank on the NSE, the deal is the largest cross-border investment in the Indian banking sector. However, it is subject to the necessary approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
With this investment, SMBC plans to gain an access to one of the largest private sector commercial banks in India which will allow us to further accelerate SMBC Group’s business in India, and contribute to the further development of the Indian financial industry as well as supporting the flow of trade and capital from Japan to India.
SMBC may target majority control in Yes Bank via a merger or open offer
As per media reports, SMBC is planning to acquire 51% stakes in Yes Bank. The reports suggest that the acquisition could take one of the following two routes: a) SMBS may acquire less than 26% shares in Yes Bank as a part of a merger via a share swap, b) it could buy up to 26% shares and launch an open offer. However, the voting rights will be capped at 26% for SMBS.
Yes Bank share price, which surged around 8.7% in the opening trading session, is trading at ₹20.49 a piece, as of May 12, 3:30 PM.
Who owns Yes Bank?
As of FY25, the State Bank of India is the largest shareholder of Yes Bank with a 23.97% stake. Verventa Holdings Limited owns 9.2% shares, followed by Ca Basque Investments (6.84%), LIC (3.98%), HDFC Bank (2.75%), and ICICI Bank (2.39%) shares in the bank.
| Major Shareholders of Yes Bank Ltd | Shareholding (%) |
| State Bank Of India | 23.97 |
| Verventa Holdings Limited | 9.2 |
| Ca Basque Investments | 6.84 |
| LIC | 3.98 |
| HDFC Bank | 2.75 |
| ICICI Bank | 2.39 |
| Kotak Mahindra Bank | 1.21 |
| Axis Bank | 1.01 |
| IDFC First Bank | 0.92% |
| Federal Bank | 0.76% |
| Bandhan Bank | 0.70% |
Source: Screener.in
For context, SBI led a mega bailout of Yes Bank in March 2020. It led a rescue plan worth ₹7,250 crore in Yes Bank, along with the participation of other banks such as ICICI Bank, Axis Bank, HDFC, and Kotak Mahindra.
Financial performance of Yes Bank
During Q4, Yes Bank recorded a 59.3% YoY rise in profits to ₹745 crore as compared to ₹467 crore generated in the same quarter of the previous fiscal year. The total revenue of the bank grew only 3.7% to ₹9,438 crore during the same quarter.
On an annual basis, Yes Bank reported ₹37,075.62 crore revenue and ₹2,446.49 crore net profit in FY25. For more details, visit here.
| Financials | Q4 FY25 (₹ Cr) | Q4 FY24 (₹ Cr) | YoY Change |
| Revenue | 9,438 | 9,100 | 3.7% |
| Expense | 8,114 | 8,184 | -0.9% |
| Profit/Loss | 745 | 467 | 59.3% |
Source: Company filings
Summary
The stock price of Yes Bank surged nearly 8.7% on May 12, 2025, led by the potential acquisition by Japan’s Sumitomo Mitsui Banking Corporation (SMBC). The deal includes a sale of 20% shares worth ₹13,483 crore; out of which, SBI is selling 13.19% stakes, and other banks, including Axis Bank, Bandhan Bank Limited, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank, are selling 6.81% stakes to SMBC. The deal will value Yes Bank at ₹67,416 crore.
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