New Delhi, May 12 — Shares of Yes Bank ended over 2 per cent higher on Monday following the announcement that State Bank of India (SBI) and seven other Indian lenders would sell a combined 20 per cent stake in the private lender to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for Rs 13,483 crore.
Yes Bank Stock Sees Strong Activity
On the BSE, Yes Bank shares rose 2 percent to close at Rs 20.40 apiece after hitting an intraday high of Rs 21.74, up 8.7 percent. On the NSE, the stock ended at Rs 20.49, gaining 2.34 percent after touching a high of Rs 21.70, an 8.39 percent surge.The company’s market capitalisation rose by Rs 1,258.37 crore, reaching Rs 63,966.60 crore by the end of the trading session.
SMBC to Become Largest Shareholder in Yes Bank
This strategic deal, pegged as the most significant cross-border investment in the Indian banking sector, will make SMBC the single largest shareholder in Mumbai-based Yes Bank upon completion.Out of the 20 per cent stake being offloaded:
- SBI will dilute 13.19 per cent, amounting to 413.44 crore shares, for Rs 8,888.97 crore
- The remaining 6.81 per cent will be sold by Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank for Rs 4,594 crore.
SBI and Other Bank Stocks Also Surge
Shares of SBI and the other seven participating banks also witnessed notable gains during Monday's trading. These institutions invested in Yes Bank during its 2020 reconstruction under the YES Bank Reconstruction Scheme, which was initiated to stabilise the bank during a financial crisis.The transaction, approved by the executive committee of SBI’s central board, marks a significant step in the ongoing revival of Yes Bank and signals renewed investor confidence.