Yes Bank shares rise 3% as CCI approves Japan's SMBC proposal to acquire stake in 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) 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.

"CCI approves acquisition of certain share capital and voting rights of Yes Bank by Sumitomo Mitsui Banking Corporation," the regulator said in a post on X.

Following this, shares of Yes Bank gained on Wednesday. At the time of writing the piece, shares of the bank were trading at ₹20.06 apiece, rising 2.61%.

Last month, 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.

The RBI has further clarified that pursuant to the acquisition, SMBC would not be treated as a promoter of the 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.

Over the last five trading days, Yes Bank shares have gained 6%, while year-to-date, they have surged 2%.

Since March 3, 2025, which is six months, shares of the lender have climbed more than 22%.

The bank’s market capitalisation stands at ₹62,613.58 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.