YES Bank, SBI, and seven other banking shares jump up 5% in trade; here is everything you need to know

At the time of writing this news, YES Bank shares were trading 3.15% higher at ₹20.65 apiece on the NSE. SBI stock was trading at ₹800.35, up 2.71% on the NSE.

HDFC Bank shares were trading 2.83% higher at ₹1,943.10 apiece, while Bandhan Bank was up 4.77% at ₹163.71.

ICICI Bank was trading 2.89% higher at ₹1,429 on the BSE.

Following the completion of the transaction, SMBC will become the single largest shareholder of Mumbai-based YES Bank.

Of the 20% stake, SBI would dilute a 13.19% stake in YES Bank in favour of SMBC for a consideration of ₹8,889 crore, while 6.81% shareholding will be offloaded by seven other lenders -- Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank -- for about ₹4,594 crore.

SBI and the seven investor lenders had invested in the bank as part of the YES Bank Reconstruction Scheme in March 2020.

The share sale is proposed to take place at a price of ₹21.50 per equity share, it said.

The executive committee of the central board (ECCB) of the bank in the meeting has accorded approval to divest 413.44 crore shares, equivalent to a 13.19% stake in YES Bank, for a consideration of ₹8,888.97 crore, SBI said in a regulatory filing.

SBI, which currently holds a 24% stake in YES Bank, will be left with a little over 10% stake after the dilution.

Among other lenders, HDFC Bank had 2.75%, ICICI Bank 2.39%, Kotak Mahindra Bank 1.21%, Axis Bank 1.01%, IDFC First Bank 0.92%, Federal Bank 0.76%, and Bandhan Bank 0.70%, as of March 31, 2025.

SMBC is a wholly owned subsidiary of Sumitomo Mitsui Financial Group, Inc. (SMFG). SMFG is the second largest banking group in Japan, with total assets of $2 trillion as of December 2024 and a strong global presence.

SMBC is among the leading foreign banks in India, and SMFG's wholly owned subsidiary, SMFG India Credit Company Limited, is among the largest diversified NBFCs in India.

The transaction, if completed, could reshape the ownership and strategic direction of Yes Bank — a lender that has seen a dramatic turnaround since its near-collapse in 2020, when a rescue led by SBI and other domestic financial institutions kept it afloat.

Commenting on the deal, Yes Bank MD and CEO Prashant Kumar said SMBC is a major shareholder whose investment marks a pivotal step in the next phase of the bank's growth.

"We expect to benefit from their global expertise and high governance standards. This investment is a powerful endorsement of our transformation journey and future potential. Over the past few years, our growth has been shaped by the strong partnership and unwavering support of SBI, and they will continue to remain a valued stakeholder," Kumar said.

YES Bank Q4 Results

YES Bank, the country's leading private lender, on Saturday, April 19, reported a net profit of ₹738 crore in the quarter ended March 2025, marking an increase of 63% from ₹452 crore in the same period last year. The sharp jump in net profit came on the back of lower provisioning. The bank's provisions for bad loans declined to ₹318 crore as against ₹471 crore in the year-ago period.

YES Bank's net interest income, or the difference between interest earned on loans and expended on deposits, came in at ₹2,276.36 crore, up nearly 6% from ₹2,153 crore in the corresponding period last year.

The Mumbai-based lender's asset quality remained stable at the end of the March quarter as its gross non-performing assets (NPA), as a percentage of total advances, came in unchanged at 1.60% sequentially. In absolute terms, gross NPA stood at ₹3,935.61 crore.

Shares of YES Bank have jumped nearly 14% in the past five sessions (from May 5 to May 9).