On Tuesday, Yes Bank’s stock witnessed a sharp rally, surging as much as 9.6% on the NSE to hit ₹19.44. However, some of those gains were pared during the afternoon session, with the stock settling at ₹18.11. The previous closing price was ₹17.73.
🚀 What’s Driving the Rally?
The surge comes amid reports that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is in advanced discussions to acquire a 51% stake in Yes Bank. If finalized, this could mark one of the largest foreign investments in India’s banking sector, with the deal reportedly valued at around $1.7 billion (approximately ₹14,000 crore).
This potential acquisition could eclipse previous major transactions in the sector — notably, the 2020 merger of Lakshmi Vilas Bank with Singapore’s DBS Bank, which was driven by financial instability.
🏦 Regulatory Progress & Strategic Moves
Sources indicate that SMBC has already received in-principle approval from the Reserve Bank of India (RBI). The Japanese banking giant may pursue one of two routes: either directly acquiring a 26% stake followed by an open offer, or seeking management control via a merger.
Currently, the deal is facing some hurdles, especially regarding ownership structure and voting rights, but talks between SMBC and SBI — Yes Bank’s key stakeholder — are reportedly ongoing.
