Yes Bank shares rally over 2% as RBI nods for key board amendments involving SMBC, SBI nominees

The approval allows two nominee directors to be appointed by SMBC and one by the State Bank of India (SBI) to join the bank’s board of directors. These appointments will happen once the related transactions, as per the agreement, are completed.

However, the changes are contingent upon the completion of transactions outlined in the SPA and other related agreements.

“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”),” Yes Bank further said in the filing.

On September 3, the Competition Commission of India (CCI) had cleared Japan's Sumitomo Mitsui Banking Corporation's (SMBC) proposal to acquire up to a 24.99% stake in the private sector lender.

SMBC is a wholly owned subsidiary of Sumitomo Mitsui Financial Group, Inc. (SMFG). It is among the leading foreign banks in India, and SMFG's wholly owned subsidiary, SMFG India Credit Company, is among the largest diversified NBFCs in India.

"The proposed combination relates to the acquisition of share capital and voting rights of Yes Bank by Sumitomo Mitsui Banking Corporation (SMBC)," the Competition Commission of India (CCI) had said in a release.

SMFG is the second-largest banking group in Japan, with total assets of $2 trillion as of December 2024, and has a strong global presence.

In August, Yes Bank announced that the RBI accorded approval to SMBC to acquire up to a 24.99% stake in the lender.

The development follows the May 9, 2025, disclosure of Yes Bank about the SMBC's proposed acquisition of a 20% holding in the lender through a secondary stake purchase of a 13.19% stake from the State Bank of India and a 6.81% share from seven other shareholders.

Other shareholders are Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.

After the transaction, SMBC becomes the single-largest shareholder of Mumbai-based Yes Bank.

SBI and the seven investor lenders had invested in the bank as part of the Yes Bank reconstruction scheme in March 2020. The state-owned lender currently holds a 24% stake in Yes Bank and will be left with a little over a 10% stake after the dilution.

Shares of Yes Bank gained 2.45% to an intraday high of ₹20.84 apiece on the National Stock Exchange. At 10:51 AM, the stock was trading at ₹20.72 per share, rising 1.87%.

In a moth's time, Yes Bank shares have climbed over 10%, while year-to-date, they have surged 6%. Since March 10, 2025, which is six months, shares of the lender have jumped more than 25%.

The bank’s market capitalisation stands at ₹65,031.28 crore.

Shares of Yes Bank had touched their one-year high of ₹24.41 apiece on September 11, 2024, while their 52-week low of ₹16.02 was hit on March 12, 2025.