Yes Bank Stock Price: The Japanese company Sumitomo Mitsui Banking Corporation (SMBC) wants to buy 20 percent stake in the private sector’s Yes Bank in India. For this, SMBC has sought approval from the Competition Commission of India (CCI). The name of SMBC is one of the legendary foreign banks in India. It is a fully owned subsidiary of Sumitomo Mitsui Financial Group, Inc. SMFG is the second largest banking group in Japan. As of December 2024, its total assets were worth US $ 2 lakh crore.
In May this year, State Bank of India (SBI) and 7 other lenders announced the sale of 20 percent of their joint stake in Yes Bank to SMBC. The deal is going to be Rs 13,483 crore. On this value, it is the largest cross border investment in India’s banking sector. SMBC will become the largest shareholder in Yes Bank after the transaction is completed.
Who will sell how much share in 20 percent
Out of this 20 percent stake being sold, 13.19 percent stake will be reduced by SBI. In return, SMBC will give Rs 8,889 crore. Apart from this, 6.81 percent stake from Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank will be sold for about Rs 4,594 crore. SBI currently holds 24 percent stake in Yes Bank. After selling a steak to SMBC, it will have more than 10 percent stake in Yes Bank.
When did SBI invest
SBI and these 7 other banks invested in the bank in March 2020 as part of the reconstruction scheme for Yes Bank. RBI took a big decision in March 2020 after Yes Bank came on the floor from Arsh. RBI dissolved the bank board due to not finding a revival plan within the stipulated time of bank management and appointed former SBI CFO Prashant Kumar as administrator. As of 3 April 2020, the withdrawal limit from deposit to customers increased to Rs 50,000. Also asked SBI to make a consortium of banks to invest in Yes Bank.
It was also directed that the current shareholders of Yes Bank cannot sell 75 percent of their shareholdings for the next 3 years. After this, SBI along with LIC and other banks added Rs 11,000 crore to Yes Bank. In October 2022, Prashant Kumar was made the bank’s CEO and MD.
20 percent climbed in 3 months Yes Bank share
On June 30, Yes Bank’s stock on BSE closed 0.79 percent to close at Rs 20.35. The bank’s market cap is close to Rs 64000 crore. The stock has climbed 20 percent in 3 months. At the same time, 14 percent has come down in a year. The bank has said in an exchange filing that Non Executive Director Shweta Jain has resigned. In his place, the board of the bank has appointed D Shivkumar as Additional Director (Non Executive). The approval of shareholders is yet to be taken on this appointment.
What is the trend of brokerage shares
Recently, Goldman Sachs gave a target price of ₹ 15 per share with a “cell” rating for Yes Bank shares. Out of the 11 analysts covering the stock, 10 have given a ‘sale’ rating. Only Nomura has given a “hold” rating. Recently, the international credit rating agency Moody’s raised the rating of Yes Bank from BA3 to BA2. At the same time, the Outlook was changed to ‘negative’ to ‘stabilized’. RBI has approved the tenure of the managing director of Yes Bank and CEO Prashant Kumar to extend 6 months.
In the January-March 2025 quarter, the net profit of Yes Bank’s standalone basis increased by 63 percent to Rs 738 crore on a annual basis. It was Rs 451.9 crore a year ago. In FY 2025, the bank’s net profit doubled to Rs 2,406 crore, while in FY 2024 it was Rs 1,251 crore.
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