American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Yes Bank share price jumps 3% as SMFG plans additional $1.1 billion investment

by admin July 15, 2025
July 15, 2025
Yes Bank share price jumps 3% as SMFG plans additional $1.1 billion investment

Yes Bank’s share price jumped 3% on Tuesday after a Bloomberg report indicated that the Sumitomo Mitsui Financial Group (SMFG) is considering an additional investment of $1.1 billion in the bank.

The report came two months after the SMFG purchased a 20% stake in Yes Bank, signalling it’s deepening commitment to India’s fast-growing financial sector.

If the deal is finalized, SMFG will pick up around 5% of Yes Bank’s shares, which would be bought from Carlyle Group and a few other smaller investors.

In a parallel move, SMFG is also said to be considering an investment of nearly $680 million in Yes Bank’s convertible bonds, a step that could significantly bolster the private lender’s expansion plans.

Together, these steps could lift SMFG’s stake in Yes Bank to just under 25%, carefully stopping short of the 26% mark that would trigger a mandatory open offer for another 25% under Indian regulatory norms.

Consolidating influence

This proposed investment follows SMFG’s earlier move in May 2025, when it picked up a 20% stake in Yes Bank for around $1.6 billion.

That transaction made SMFG the bank’s largest shareholder and gave it the authority to appoint two board members, a step that significantly deepened its influence over the bank’s strategic decisions.

SMFG’s growing involvement with Yes Bank is part of a larger pattern of Japanese banks stepping up their presence in India’s financial landscape.

With a vast, still largely untapped market and economic growth expected to stay above 6% annually through FY27, India is becoming an increasingly appealing destination for foreign investors looking for long-term opportunities.

Yes Bank’s recovery in recent years has been noteworthy. Following a severe bad loan crisis in 2020 that prompted a rescue led by SBI and a consortium of investors, the bank has steadily rebuilt itself.

Improvements in asset quality and a return to consistent profitability suggest that the worst is behind it, marking a clear shift in its operational trajectory.

Yes Bank share price may remain volatile

If the deal goes through, SMFG’s total investment in Yes Bank would climb to $2.7 billion, firmly establishing it as the bank’s largest shareholder.

The partnership stands to benefit both sides: Yes Bank gets a well-capitalized backer with international banking experience, while SMFG strengthens its presence in one of the world’s most promising emerging markets.

However, analysts and investors still maintain a cautious stance on Yes Bank’s share price as both ICICI Securities and Emkay Global Financial Services continue to maintain ‘sell’ ratings on Yes Bank, with target prices of ₹20 and ₹12, respectively.

The predominant negative ratings stem from ongoing concerns around the bank’s ability to sustain profitability, its relatively heavy reliance on wholesale deposits, and muted return ratios, even as asset quality and capital buffers have shown signs of improvement.

The post Yes Bank share price jumps 3% as SMFG plans additional $1.1 billion investment appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
These 3 stocks may be next in line to join the S&P 500 index
next post
Asian stocks end higher on Tue: Hang Seng climbs 1.6%, Nikkei up 0.5%

Related Posts

Paramount merger sparks concern among movie theater owners

July 11, 2024

Long CMCSA: Comcast Corp. Finds Support After Sharp...

January 4, 2025

Brazil’s Azzas reports 35.8% drop in Q4 profit...

March 13, 2025

Spotify stock price forms W pattern ahead of...

April 28, 2025

Asian stocks end mixed: Hang Seng jumps 0.7%,...

May 6, 2025

Here’s how Trump tariffs were calculated and why...

April 3, 2025

Snap stock: 3 reasons why it looks better...

June 28, 2025

Nifty 50 index risky pattern points to a...

December 2, 2024

Vodafone share price could be on the cusp...

May 20, 2025

After massive spending spree worth $14.3 billion, Meta...

August 21, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Why India’s gold demand is expected to dip this festive season

      September 15, 2025
    • Oil jumps 2% as OPEC agree to smaller output hike for October, sanction threats looms

      September 8, 2025
    • Weekly recap: tech titans woo Trump, Xi’s political theatre, Starmer’s reshuffle

      September 7, 2025
    • Trump reaffirms backing for Robert Kennedy amid vaccine policy turmoil

      September 7, 2025
    • South Korean president promises aid to citizens held in US immigration raid

      September 7, 2025

    Categories

    • Business (3,954)
    • Investing (2,864)
    • Latest News (2,059)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved