Tue Nov 18 04:20:00 UTC 2025: News Article:
Yes Bank Shares Surge on Rumors of Potential Stake Increase by Sumitomo Mitsui Banking Corporation
Mumbai – Shares of Yes Bank experienced a nearly 3% jump on Monday, trading at ₹23.30 apiece, following reports indicating that Sumitomo Mitsui Banking Corporation (SMBC) is considering increasing its stake in the private lender.
The Economic Times reported that SMBC, currently holding a 24.99% stake in Yes Bank, is open to acquiring additional shares, pending regulatory approval. Rajeev Kannan, SMBC’s managing executive officer and head of the India division, stated in an interview that the bank would consider increasing its stake further “if there are the right opportunities,” subject to regulatory discussions.
SMBC has already invested approximately $7 billion in India, including its NBFCs and branch network. Kannan also indicated that the financial institution is exploring the possibility of establishing a wholly-owned unit in India, viewing it as crucial for long-term operations. While he did not confirm whether SMBC has applied for a local unit license with the Reserve Bank of India (RBI), the company is actively pursuing this goal.
The potential for increased investment comes as Yes Bank recently announced an 18.3% year-on-year increase in standalone net profit to ₹654.5 crore for Q2 FY26. This growth was driven by higher other income and reduced interest expenses, despite a challenging lending landscape that saw a 3% year-on-year decrease in net interest income (NII) to ₹2,300.9 crore. Total income for the quarter stood at ₹9,023.2 crore, down 1.2% from the same period last year.
While gross non-performing assets (GNPA) increased 4.3% year-on-year to ₹4,055.3 crore, the GNPA ratio remained stable at 1.6%, unchanged from the previous year.
The news of SMBC’s potential increased investment has instilled confidence in Yes Bank’s stock, reflecting positive sentiment regarding the bank’s future prospects.
Summary:
Yes Bank’s share price rose by almost 3% after reports surfaced that Sumitomo Mitsui Banking Corporation (SMBC), which already owns 24.99% of Yes Bank, is open to increasing its stake further, pending regulatory approval. An SMBC executive mentioned they would consider it if the right opportunities arose. SMBC is also looking to establish a wholly-owned unit in India. The news followed Yes Bank’s Q2 FY26 results, which showed an 18.3% increase in net profit, despite challenges in net interest income.
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