Capital Boost: Yes Bank Stock Gains On SMBC's Reported ₹16,000 Crore Infusion

2025-08-29 05:01:41

(MENAFN- AsiaNet News)

Yes Bank shares rose 4.4% after reports emerged that Sumitomo Mitsui Banking Corp (SMBC) is preparing to infuse ₹16,000 crore into the private lender.

Japanese banking giant SMBC will invest through a combination of equity and debt, according to a report by The Economic Times. The move is aimed at strengthening Yes Bank's balance sheet and could set the stage for SMBC to take a larger ownership role in the lender.

This fresh funding will be in addition to the ₹13,500 crore that SMBC has already committed to pay existing shareholders, including State Bank of India (SBI), for acquiring a 20% stake.

The planned capital structure includes ₹8,500 crore via low-cost yen-denominated bonds priced below 2%, which would reduce Yes Bank's borrowing costs, and ₹7,500 crore through equity, likely in the form of foreign currency convertible bonds (FCCBs), the report added.

Last week, the Reserve Bank of India approved SMBC's proposal to acquire up to 24.99% stake in Yes Bank.

Yes Bank first disclosed the proposed acquisition by SMBC in May, under which the Japanese entity aimed to acquire a 20% stake in the bank through a secondary share purchase, including 13.19% from the State Bank of India and a combined 6.81% from seven other shareholders: Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

SMBC is reportedly setting up a subsidiary in India to facilitate the transaction. The Japanese company is still exploring ways to secure the remaining 4.99% stake, either through private equity players Advent and Carlyle or fresh equity issuance.

Stock Watch

Retail chatter on Stocktwits was 'high' with Yes Bank among the top three most trending stocks on the platform. Sentiment remained 'bullish'. It was 'neutral' a week earlier.

Yes Bank's Sentiment Meter and Message Volumes at 12:15 p.m. IST on August 29 | Source: Stocktwits

The stock has increased in value by more than 16% over the past six months.

For updates and corrections, email newsroom[at]stocktwits[dot]com. <

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