Speculation of Stake Acquisition by SMBC
Reports indicate that Japan's Sumitomo Mitsui Banking Corporation (SMBC) is in advanced discussions to acquire a significant stake in Yes Bank. The Reserve Bank of India (RBI) has reportedly approved SMBC's proposal to acquire up to a 51% stake in the bank. This potential acquisition has fueled investor optimism about Yes Bank's future prospects.
Strong Q4 FY25 Financial Performance
Yes Bank reported a 63% year-on-year increase in net profit for the fourth quarter of FY25, amounting to ₹738 crore. The bank also demonstrated improved asset quality, with gross non-performing assets (NPAs) reducing to 1.6% and net NPAs to 0.3%. Additionally, loans and advances grew by 8.2%, and deposits increased by 6.8% during the same period.
These factors combined have contributed to the notable rise in Yes Bank's share price, reflecting renewed investor confidence in the bank's growth trajectory and strategic direction.
FAQ
1. Why did Yes Bank's share price rise over 7% today?
The share price rose due to two main reasons: reports that Sumitomo Mitsui Banking Corporation (SMBC) may acquire a significant stake in the bank, and Yes Bank’s strong Q4 FY25 earnings report showing a 63% jump in net profit.
2. Is the RBI involved in SMBC's potential stake acquisition?
Yes, reports suggest that the Reserve Bank of India (RBI) has approved SMBC’s proposal to acquire up to a 51% stake in Yes Bank, which has boosted investor sentiment.
3. What were Yes Bank's Q4 FY25 financial highlights?
Yes Bank reported a ₹738 crore net profit, a 63% YoY increase. Gross NPA dropped to 1.6%, net NPA to 0.3%, loans and advances rose by 8.2%, and deposits increased by 6.8%.
4. How are analysts reacting to Yes Bank's performance?
Many analysts see the Q4 results and acquisition talks as positive indicators for the bank’s future. Short-term targets for the stock have been revised upwards by several brokerage firms.
5. Should investors buy Yes Bank shares now?
While current momentum is strong, potential investors should consider risks, conduct due diligence, and review expert analyses before making decisions.
Publish on may 9,2025 by :selvi
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