YES Bank Shares Jump 9% as SMBC Buys Stake for Rs.13,483 Cr – Should You Buy?

YES Bank Shares: YES Bank's stock rose by 9% on Monday after it announced that Sumitomo Mitsui Banking Corporation (SMBC) will buy a 20% stake in the bank for Rs.13,483 crore. The deal involves buying shares from SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and a few other banks. SMBC will pay Rs.21.50 per share for this deal.

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YES Bank Shares Rally After Announcement

After the news, YES Bank shares went up to Rs.21.74 on Monday, from Rs.20 on Friday. This rise has taken the bank's market value to Rs.68,200 crore. In the last two months, the stock has climbed 36% from its 52-week low of Rs.16.02.

What Experts Say About the Deal

Analysts call this a win-win move. SBI and other banks who helped YES Bank in 2020 are making profits now. YES Bank will benefit from SMBC's global experience and capital.

"This could be a game-changing move for YES Bank," said Prashanth Tapse of Mehta Equities.

However, not all experts are fully positive. Some say that while the deal is good news in the short term, the bank's actual performance will take time to improve.

YES Bank's Financial Performance

In Q4 FY25, YES Bank reported a 63.3% rise in net profit to Rs.738.1 crore. Its Net Interest Income (NII) went up by 5.7% to Rs.2,276.3 crore. The Net Interest Margin (NIM) improved to 2.5%.

SBI Makes Big Profit from YES Bank Deal

SBI had bought YES Bank shares at Rs.10 during the 2020 bailout. Now, it is selling them at Rs.21.50, making a 115% return, earning over Rs.4,700 crore. This shows that the banking sector is gaining investor trust again.

Global Interest May Rise in Indian Banks

According to Abhishek Jain from Arihant Capital, this deal may attract more foreign investors to Indian banks. It also hints at more strategic deals in the future, like the expected sale of IDBI Bank.

What Are the Share Price Targets?

• Nomura: Neutral rating, target Rs.17
• ICICI Securities: Neutral, target Rs.16
• Kotak Institutional: Sell, target Rs.17

However, technical experts are more hopeful. Riyank Arora suggests a ‘buy on dips’ strategy with a stop loss at Rs.19.20. He sees resistance at Rs.21.50, and future targets of Rs.23 and Rs.24.

Should You Buy YES Bank Shares?

The SMBC deal is a strong signal of trust in YES Bank's future. While long-term growth will take time, short-term traders may benefit from the rising momentum. Experts suggest buying on dips with proper stop losses.

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