Following the Competition Commission of India (CCI)‘s approval of Sumitomo Mitsui Banking Corporation (SMBC)‘s purchase of a 20% interest in the private lender, YES Bank shares increased by more than 4% during Wednesday’s trading session. Through an exchange filing on Tuesday, YES Bank provided notice of the same.
The CCI has approved SMBC’s payment of $1.6 billion for a 20% stake in YES Bank. This agreement, which was signed in May, is among the biggest cross-border deals in the banking industry in India.
The Reserve Bank of India (RBI) had earlier allowed SMBC to grow its stake to 24.99%, and the lender’s shareholders approved the funding in August.
Shares of YES Bank jumped 4.14 percent to Rs 20.36 on Wednesday after the news, bringing the bank’s total market valuation to almost Rs 63,500 crore. The shares closed at Rs 19.56 on Tuesday. YES Bank’s stock rose more than 27% from its 52-week low of Rs 16.02 in March 2025.
SMBC plans to invest an additional Rs 16,000 crore in YES Bank through a mix of equity shares and financing. By taking this step, the bank should be able to lend more effectively and enhance its balance sheet. With a completely owned subsidiary in India, SMBC may be able to achieve its goal of a greater share in the future.
The acquisition strategy involved secondary purchases, with the State Bank of India holding a 13.19% stake, while other banks such as Axis Bank and HDFC collectively accounted for 6.81%.
As of June 2025, YES Bank has one of the lowest net interest margins (NIMs) among its rivals, at 2.5%. In the first quarter of FY 2025–26, the bank reported a 60% surge in net profit, reaching Rs 801 crore, while its net interest income grew by 6% to Rs 2,371 crore.
The developments of YES Bank stand in contrast to those of its rivals, such as ICICI Bank and HDFC Bank, in the market.