State Bank of India (SBI) announced on Friday that it will sell approximately 13% of its stake in YES Bank Ltd to Japan's Sumitomo Mitsui Banking Corporation (SMBC). It is anticipated that the deal will close on a date that has been mutually agreed upon or within a year of its execution.
In a meeting on May 9, 2025, the Bank's Executive Committee of the Central Board (ECCB) approved the sale of 413,44,04,897 equity shares of Yes Bank Ltd (YBL), or 13.19 percent (approximately) of YBL shares, to Sumitomo Mitsui Banking Corporation (SMBC) for a consideration of Rs 88,88,97,05,285 and paisa 50 only. This is contingent upon the acquirer obtaining all statutory and regulatory approvals, according to a BSE filing.
YES Bank shares were up 11.74 percent today, reaching an intraday high of Rs 20.36. The stock eventually closed 9.77 percent higher at Rs 20. SBI closed 1.39 percent higher at Rs 779.40.
SBI currently owns 24 percent of YES Bank, while other domestic entities such as Kotak Mahindra Bank, Axis Bank, ICICI Bank, and Life Insurance Corporation of India (LIC) own a combined 11.34 percent. Private equity (PE) funds Advent International and Carlyle reportedly owned 9.2 percent and 6.84 percent, respectively.
Once this occurs, SBI's stake in the private lender will be reduced to 10.81 percent. A few market experts believe that this stake sale could help the beaten-down YES Bank stock.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, stated that the recent report of a foreign bank acquiring a significant stake in YES Bank has created some positive momentum on the stock. "The last quarter's results were positive, and the BFSI sector's outlook is generating some buying interest in the private lender. Investors with a high risk tolerance and a long-term perspective can hold on to YES Bank," he added.
Amit Goel, co-founder and chief global strategist at Pace 360, stated that the asset management company (AMC) has 'aggressively' purchased shares of YES Bank Ltd. "We purchased a large amount of YES Bank stock. My impression is that YES Bank will experience some very positive developments in the coming months. I believe it will give us 15-20% returns over the next few months. "We aggressively acquired YES Bank," he said.
"The bank recently staged a notable technical breakout, moving decisively above its trendline resistance—a key signal pointing to a potential shift in momentum," said Jigar S. Patel, Senior Manager-Technical Research Analyst at Anand Rathi. "Additionally, the stock made a strong recovery from a crucial support level, enhancing confidence in its stability and potential for short-term growth. It signals a reversal of the trend and may open the door for additional gains in the upcoming sessions if it is backed by robust volumes and optimistic market sentiment."
