Yes Bank Shares Trim 2025 Losses on Reports of Sumitomo Mitsui Securing RBI Approval

Shares of Yes Bank soared as much as 10% on the National Stock Exchange in the early session today after the Mint reported that Japan's Sumitomo Mitsui Banking Corp has received the approval from the Reserve Bank of India to acquire 51% stake in the private lender.

The stock has been on a losing terrain since the beginning of this year as it had lost 9.5% in 2025 till Monday’s closing price. However, the acquisition news came as a positive trigger for the stock as it trimmed its losses and at its intraday high level it was just 0.8% lower than December 31 closing price.

The proposed transaction might value the bank at nearly $1.7 billion, the Mint said in its report, citing people familiar with the matter. After initially acquiring a 26% stake in the lender, the Japan-based bank might subsequently merge with Yes Bank through a share swap or it could make an open offer, the report added.

Although the shareholding of Sumitomo Mitsui might eventually rise to 51%, its voting rights will remain capped at 26% in accordance with RBI regulations.

Yes Bank was rescued by a consortium of banks, led by SBI, in 2020 after the bank was restructured under the watch of RBI after the lender fell short of liquidity requirements. Back then its promoter CEO was Rana Kapoor and since him, the lender does not have any formal promoter. As per the shareholding data available on the NSE, State Bank of India has 24% stake in the lender.

It’s still not clear which of the other financial institutions will exit other than SBI, media reports said.  

The lender’s net profit for FY25 rose 92% on year, while its net interest margin was stable at 2.4%. Its CASA ratio also improved as it went up by 120 bps on a sequential basis and 340 bps on a year-on-year basis to 34.3%.