YES Bank shares tumble nearly 5% today; here is why

Shares of YES Bank Ltd fell sharply in Friday's session, declining 4.58 per cent to Rs 22.06, after it was reported that Japan's Sumitomo Mitsui Banking Corporation (SMBC) has no immediate plans to raise its stake in the private lender beyond the current regulatory limit.

Rajeev Kannan, Group Executive Officer and Head of SMBC Group's India division, told news agency Reuters that the Japanese bank was not looking to increase its stake in YES Bank beyond 24.99 per cent.

"We are not actively looking at increasing our stake in YES Bank beyond the regulatory permissible limit of 24.99 per cent," Kannan stated. He added that the focus remains on contributing to the bank's board as its largest shareholder and ensuring the execution of its improvement plans.

SMBC currently holds 24.2 per cent in YES Bank. Under Indian takeover rules, increasing ownership to 25 per cent or more would trigger a mandatory open offer to acquire at least an additional 26 per cent from public shareholders, potentially resulting in a majority stake.

In August 2025, SMBC received the Reserve Bank of India's (RBI's) approval to purchase up to 24.99 per cent stake in YES Bank from State Bank of India (SBI) and seven other shareholders.

The approval followed a May 2025 agreement under which SMBC agreed to buy a 20 per cent stake for $1.6 billion, marking one of the largest cross-border transactions in India's financial sector.

Meanwhile, YES Bank is set to announce its July–September quarter (Q2 FY26) results on October 18. Brokerages expect the lender to post steady margins and muted loan growth, with profitability supported by recoveries and cost control rather than a strong expansion in core lending.