Yes Bank’s story is going to change. Sumitomo Mitsui Banking Corporation (SMBC) is going to buy 20 per cent stake in Yes Bank. This has increased the possibility of Yes Bank returning good days. Its impact was seen on the shares of Yes Bank on 12 May. Yes Bank shares jumped as soon as the market opened. Due to this news, on May 8, Yes Bank has seen a big boom in shares. Buying the share of SMBC is good news for Yes Bank’s customers and people who put money in its shares.
Yes Bank reached the verge of bankruptcy in 2020. The RBI then asked some big banks including SBI to protect Yes Bank from drowning. With the help of these banks, this bank survived drowning. The crisis can be gauged from this that on September 7, 2020, the price of Yes Bank’s stock fell to Rs 10.90. On July 13, 2018, the share price was Rs 385. Now SMBC will buy his stake in Yes Bank from those banks including SBI, who invested in Yes Bank to save them from drowning.
SBI is going to buy SBI’s stake in SMBC Yes Bank for Rs 13,482 crore. On this basis, the price of Yes Bank has been charged around Rs 67,000 crore. Yes Bank’s share price from its lower level of 2020 has almost doubled. This means that banks who invested in it to save this bank from crisis have received 100 percent returns on their money. These include big banks like HDFC Bank and ICICI Bank.
SMBC will nominate two non-executive directors in the board of Yes Bank. SMBC has the option to increase the stake in Yes Bank. However, RBI approval is necessary for this. SBI is currently selling only some of its stake in Yes Bank. He will maintain his 10 percent stake in Yes Bank. SMBC’s investment has changed the sentiment about Yes Bank shares. If the performance of Yes Bank is good then its good days can return. It was a time fastest growing bank.
FY 2024-25 was not good for the entire banking industry. It also affected Yes Bank. Yes Bank’s credit growth saw lethargy. The bank had to struggle to raise deposits. This increased the cost of the bank’s fund. Experts say that this financial year may also be challenging for the banking industry. However, it is true that the performance of Yes Bank has seen an improvement over the years. The bank’s return on asset (ROA) increased to 0.6 per cent in FY25. The management of the bank has said that ROI can reach 1 percent by FY27.
Experts from the banking industry say that the investment of SMBC will increase the valuation of Yes Bank. If SMBC further shows interest in increasing the stake in Yes Bank, it will be good for Yes Bank. The confidence of customers and investors on the bank will increase. Its impact will be seen on the bank’s financial performance. Investors should avoid taking a hasty decision in a hurry about Yes Bank’s shyars.