YES Bank shares rise 4% as CCI nods SMBC acquisition; check details, price targets & more
YES Bank shares gained more than 4 per cent on Wednesday as the CCI approved SMBC acquisition of a 20 per cent stake in the private lender.
- Sep 3, 2025,
- Updated Sep 3, 2025 1:06 PM IST
YES Bank shares gained more than 4 per cent during trading session on Wednesday as the Competition Commission of India (CCI) approved Sumitomo Mitsui Banking Corporation's (SMBC) acquisition of a 20 per cent stake in the private lender. YES Bank informed about the same through an exchange filing on Tuesday.
The CCI has approved the acquisition by SMBC of a 20 per cent stake in YES Bank, valued at $1.6 billion. This deal, signed in May, stands as one of the significant cross-border transactions in India's banking sector. The lender's shareholders consented to the fundraise in August, and the Reserve Bank of India (RBI) had already permitted SMBC to increase its stake up to 24.99 per cent.
Following the announcement, shares of YES Bank surged 4.14 per cent to Rs 20.36 on Wednesday, commanding a total market capitalization more than to Rs 63,500 crore. The stock had settled at Rs 19.56 on Tuesday. Shares of YES Bank surged over 27 per cent from its 52-week low at Rs 16.02, hit in March 2025.
SMBC plans to infuse an additional Rs 16,000 crore into YES Bank through equity and debt. This move is expected to bolster the bank's balance sheet and enhance its lending capabilities. SMBC aims for a larger stake in the future, potentially facilitated by a wholly owned subsidiary in India.
The acquisition strategy involves secondary purchase, acquiring 13.19 per cent from the State Bank of India and 6.81 per cent from other banks like Axis Bank and HDFC. SMBC, operating in 39 countries, will use its Indian subsidiary to enable majority stake acquisition in YES Bank over time.
YES Bank reported a net interest margin (NIM) of 2.5 per cent as of June 2025, one of the lowest among peers. Yet, the bank's net profit rose to Rs 801 crore in the first quarter of FY 2025-26, a 60 per cent increase from the previous year, with net interest income growing by 6 per cent to Rs 2,371 crore.
In the market context, YES Bank's developments contrast with competitors like ICICI Bank and HDFC Bank. Analysts suggest SMBC's participation could strengthen Yes Bank's financial position and alter competitive dynamics.
The CCI has approved the acquisition by SMBC of a 20 per cent stake in YES Bank, valued at $1.6 billion. This deal, signed in May, stands as one of the significant cross-border transactions in India's banking sector. The lender's shareholders consented to the fundraise in August, and the Reserve Bank of India (RBI) had already permitted SMBC to increase its stake up to 24.99 per cent.
The Reserve Bank of India (RBI) has approved the re-appointment of Rama Subramaniam Gandhi as the Part-time Chairman of the Bank for a further period from September 20, 2025 to May 13, 2027 at a remuneration approved by RBI. Gandhi, who served as the RBI from 2014-2017, is currently a financial sector policy expert and adviser, said YES Bank in an exchange filing on Monday.
In a recent report, Emkay Global Financial Services retained a 'sell' rating on YES Bank's stock, setting a target price of Rs 17. The target implies a valuation of 1.2 times the bank's FY27 estimated adjusted book value (ABV). JM Financial also has a 'sell' tag on the stock with the same target price.
ICICI Securities had a 'hold' rating on the lender with a target rice of Rs 20 on the stock, while YES Bank also had a 'sell' rating on the stock with a target price of Rs 18.
YES Bank shares gained more than 4 per cent during trading session on Wednesday as the Competition Commission of India (CCI) approved Sumitomo Mitsui Banking Corporation's (SMBC) acquisition of a 20 per cent stake in the private lender. YES Bank informed about the same through an exchange filing on Tuesday.
The CCI has approved the acquisition by SMBC of a 20 per cent stake in YES Bank, valued at $1.6 billion. This deal, signed in May, stands as one of the significant cross-border transactions in India's banking sector. The lender's shareholders consented to the fundraise in August, and the Reserve Bank of India (RBI) had already permitted SMBC to increase its stake up to 24.99 per cent.
Following the announcement, shares of YES Bank surged 4.14 per cent to Rs 20.36 on Wednesday, commanding a total market capitalization more than to Rs 63,500 crore. The stock had settled at Rs 19.56 on Tuesday. Shares of YES Bank surged over 27 per cent from its 52-week low at Rs 16.02, hit in March 2025.
SMBC plans to infuse an additional Rs 16,000 crore into YES Bank through equity and debt. This move is expected to bolster the bank's balance sheet and enhance its lending capabilities. SMBC aims for a larger stake in the future, potentially facilitated by a wholly owned subsidiary in India.
The acquisition strategy involves secondary purchase, acquiring 13.19 per cent from the State Bank of India and 6.81 per cent from other banks like Axis Bank and HDFC. SMBC, operating in 39 countries, will use its Indian subsidiary to enable majority stake acquisition in YES Bank over time.
YES Bank reported a net interest margin (NIM) of 2.5 per cent as of June 2025, one of the lowest among peers. Yet, the bank's net profit rose to Rs 801 crore in the first quarter of FY 2025-26, a 60 per cent increase from the previous year, with net interest income growing by 6 per cent to Rs 2,371 crore.
In the market context, YES Bank's developments contrast with competitors like ICICI Bank and HDFC Bank. Analysts suggest SMBC's participation could strengthen Yes Bank's financial position and alter competitive dynamics.
The CCI has approved the acquisition by SMBC of a 20 per cent stake in YES Bank, valued at $1.6 billion. This deal, signed in May, stands as one of the significant cross-border transactions in India's banking sector. The lender's shareholders consented to the fundraise in August, and the Reserve Bank of India (RBI) had already permitted SMBC to increase its stake up to 24.99 per cent.
The Reserve Bank of India (RBI) has approved the re-appointment of Rama Subramaniam Gandhi as the Part-time Chairman of the Bank for a further period from September 20, 2025 to May 13, 2027 at a remuneration approved by RBI. Gandhi, who served as the RBI from 2014-2017, is currently a financial sector policy expert and adviser, said YES Bank in an exchange filing on Monday.
In a recent report, Emkay Global Financial Services retained a 'sell' rating on YES Bank's stock, setting a target price of Rs 17. The target implies a valuation of 1.2 times the bank's FY27 estimated adjusted book value (ABV). JM Financial also has a 'sell' tag on the stock with the same target price.
ICICI Securities had a 'hold' rating on the lender with a target rice of Rs 20 on the stock, while YES Bank also had a 'sell' rating on the stock with a target price of Rs 18.