Can YES Bank Shares Jump 21% After RBI Clears SMBC Stake?

YES Bank’s stock has declined nearly 20% over the past year on NSE India and is currently trading at ₹18.99 as of August 26, 2025. The Reserve Bank of India’s (RBI) recent approval for Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to a 24.99% stake in YES Bank has reignited investor interest, with some speculating that this development could drive the stock price toward ₹23.

Following the RBI’s approval on August 22, 2025, YES Bank’s shares saw a nearly 5% increase on August 25, 2025. However, the stock’s performance remains below its 52-week high of ₹24.56.

Analysts are divided on the potential impact of SMBC’s investment. While some view it as a positive signal that could enhance YES Bank’s capital base and international partnerships, others caution that underlying risks and structural challenges may continue to affect the bank’s performance.

The deal is still subject to regulatory clearance from the Competition Commission of India (CCI), which could influence the stock’s trajectory.

In summary, while the RBI’s approval of SMBC’s investment has provided a short-term boost to YES Bank’s share price, achieving a target of ₹23 will depend on the successful completion of regulatory processes and the bank’s ability to address its fundamental challenges.