Yes Bank Share Price Falls After SMBC Rules Out Raising Stake in Yes Bank Above 25%

Sumitomo Mitsui Banking Corporation (SMBC) has firmly decided not to raise its stake in Yes Bank beyond 24.99%, choosing to stay below regulatory thresholds, as per the news reports. This clarity from the Japanese lender resulted in a sharp drop in Yes Bank’s shares, reflecting investor uncertainty on strategic implications.

SMBC Maintains Stake Within Regulatory Limit

On October 17, 2025, SMBC affirmed it will not exceed a 24.99% stake in Yes Bank, staying right below the 25% limit that triggers a mandatory open offer under Indian rules. With a current stake of 24.2%, SMBC remains the largest shareholder but does not intend to take on any executive role in the bank’s operations. The focus is on guiding the bank’s existing plans for improvements in metrics like return on equity and cost of funds.

Regulatory Hurdle Avoided

Crossing the 25% mark would have legally required SMBC to launch an open offer to buy an additional 26% from public shareholders, possibly leading to a controlling 51% stake. By staying just below this cap, SMBC avoids triggering takeover obligations and keeps administrative and compliance costs in check.

Stake Purchased from Multiple Shareholders

SMBC secured regulatory approval from the Reserve Bank of India in August to acquire up to 24.99% from State Bank of India and 7 other existing stakeholders. The initial agreement was signed in May for a 20% stake valued at $1.6 billion, marking the biggest financial sector cross-border deal in India.

Read More: YES Bank Share Price in Focus After Announcing Concall Time and Date!

Broader SMBC Strategy in India

SMBC plans to maintain separation between its investment in Yes Bank and its existing non-banking finance arm SMFG Credit, which managed assets worth $6.5 billion as of March 31, 2025. The group is also exploring areas like wealth management and asset management via its platforms in India, signalling continued long-term interest in the region.

Yes Bank Limited Share Price Performance

On October 17, 2025, Yes Bank share price opened at ₹23.13 on NSE, above the previous close of ₹23.12. During the day, it surged to ₹23.24 and dipped to ₹22.05. The stock is trading at ₹22.20 as of 3:02 PM. The stock registered a significant decline of 3.98%.

Over the past week, it has declined by 7.62%, over the past month, it has moved up by 5.36%, and over the past 3 months, it has moved up by 10.23%.

Conclusion

SMBC’s move to cap its Yes Bank investment at 24.99% reflects a careful balance between strategic influence and regulatory compliance. Despite markets reacting with a dip in share price, the bank’s clear approach marks a cautious yet solid step in its India strategy.

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