There has been a big storm in the banking sector about 5 years ago. There were reports of the drowning of Yes Bank, one of the biggest banks in the private sector. After that the RBI and the country’s largest lender SBI handled the circumstances and tried to bring the bank back on track. Now Yes Bank is in the headlines once again. The reason for this is that Asia’s big banking giant Sumitomo Mitsui is preparing to buy the Magicity Stake of the Banking Corp i.e. SMBC Yes Bank. The media report knows that the legendary bank of Japan wants to increase its expansion in India. Because of which he is in the process of buying 51 percent stake of Yes Bank. It is believed that if this deal is done then it can be the biggest deal in India’s banking sector. Let us also tell you what is the whole mother?
Japan’s legendary bank came out
According to media reports, Japanese veteran Sumitomo Mitsui Banking Corp (SMBC) is getting closer to buying a stake in Yes Bank. The conversation going on for several months is now in the final phase. According to an Economic Times report citing people aware of the case, SMBC can gain 51 per cent stake in Yes Bank. This will not only make it the biggest shareholder, but will also start an open offer for additional 26 percent. If this happens, it will be the biggest M&A deal ever in India’s banking sector. Since the way the attempt to save it after the drowning of Yes Bank in 2020, the State Bank of India (SBI) has a 24 -fasi stake in the bank and has been quietly looking for a Longater Investor. According to the Economic Times report, apart from SBI, it is not clear which investors including HDFC Bank, ICICI Bank, LIC and Advent and Carlile will consider selling their stake.
RBI rules will come in the way
Foreign ownership is strictly regulated in private banks in India. According to FDI regulations, foreign ownership is limited to 74 per cent, in which each foreign unit is limited to 15 per cent stake. According to the Economic Times report, even though the SMBC gets the green signal to buy a majority stake, the RBI is unlikely to give full voting rights. According to the current criteria, foreign investors cannot keep more than 26 per cent in voting power, even if they have more stake.
Yes Bank’s crisis returns again
This is not just a matter of ownership. Yes Bank has launched a long journey from the difficult days of 2020. The total deposit has now increased to Rs 2.85 lakh crore, which is almost triple compared to the time of rescue. Its bad loans have also declined drastically. The gross NPA has come down to 1.6 percent and NPA is only 0.3 percent. The bank recorded a net profit of Rs 2,406 crore in FY 2025, which is a huge growth of 93 per cent compared to the previous year. Compare this to FY 2020, when it recorded a loss of more than Rs 16,000 crore.
Explanation of this bank
Amidst all the news and speculation, Yes Bank said on Tuesday that the discussion on buying a stake with Sumitomo Mitsui Banking Corp (SMBC) is currently in primary phase, as well as said that it regularly searches for opportunities with the aim of raising shareholder price. Yes Bank said through stock exchange filing that such discussions are initial and at this stage do not guarantee disclosure under SEBI (Listing Obligation and Diskloser Requirements) Regulation, 2015. After this news, the bank shares saw a rise of 10 per cent during the trading session and reached the level of Rs 19.44. After the stock market was closed, the bank’s stock rose by 1.18 per cent to close at Rs 17.94. Currently, Yes Bank’s market cap is Rs 56,252.98 crore.