Yes Bank Shares Gain 2% as RBI Clears SMBC Board Nominees

Yes Bank announced on Wednesday that it has received approval from the Reserve Bank of India (RBI) to amend its Articles of Association (AoA). The amendment allows for the appointment of directors nominated by Sumitomo Mitsui Banking Corporation (SMBC) and the State Bank of India (SBI). This development marks a crucial step in SMBC’s planned strategic investment in the Mumbai-based private lender.

Board Expansion with SMBC and SBI

Following the amendment, SMBC will be able to nominate two directors to Yes Bank’s board, while SBI will appoint one. These appointments will take effect once the transactions outlined under the special purchase agreement (SPA) and related agreements are completed.

In its regulatory filing dated September 10, Yes Bank confirmed receipt of the RBI’s approval. The move comes after the Competition Commission of India (CCI) granted clearance to the Japanese lender earlier this month, building on the central bank’s go-ahead in August.

SMBC’s Planned Investment

SMBC, a wholly owned subsidiary of Sumitomo Mitsui Financial Group, is set to acquire a 20% stake in Yes Bank through secondary market transactions. Of this, 13.19% will be purchased from SBI, while 6.81% will come from seven other institutional shareholders, including Axis Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First Bank.

The planned investment is expected to bolster Yes Bank’s capital structure and enhance its corporate governance framework through active participation by SMBC nominees on the board.

Financial Performance

Yes Bank has reported steady improvement in financial metrics. For the June quarter of FY26, net interest income (NII) rose 5.8% year-on-year to ₹2,370 crore. Net profit surged 57% to ₹808.6 crore, while other income climbed to ₹1,824 crore from ₹1,270 crore a year earlier.

Asset quality remained stable, with gross non-performing assets (NPAs) at 1.6% and net NPAs at 0.3%. Provisions stood at ₹284 crore, lower than ₹317 crore in the March quarter, reflecting stronger credit discipline.

Read More: Yes Bank: Approved extension of Prashant Kumar’s tenure as MD & CEO w.e.f Oct 6, 2026

Yes Bank Share Price Performance

On September 10, 2025, Yes Bank share price opened at ₹20.46, compared to the previous close of ₹20.34. During the session, the stock touched a high of ₹20.93 and a low of ₹20.42 before closing at ₹20.83, ending the day with a gain of 2.41%.

The stock recorded a traded volume of 1,318.95 lakh shares and a traded value of ₹273.29 crore on the NSE. The market capitalisation stood at ₹65,344.99 crore. Over the past 52 weeks, Yes Bank has hit a high of ₹24.41 (September 11, 2024) and a low of ₹16.02 (March 12, 2025). The stock is currently trading at a P/E ratio of 23.29.

Conclusion

The RBI’s nod for amending Yes Bank’s Articles of Association paves the way for SMBC’s direct involvement in the bank’s governance. With improving financial performance and stable asset quality, the private lender is poised to benefit from stronger institutional support as it looks ahead to the next phase of growth.

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