Yes Bank Share Price Rises Over 1% After RBI Nod For Proposed Board Changes

Yes Bank shares were trading over 1% higher after the Reserve Bank of India approved the proposed changes in Articles of Association or the AoA of the bank, according to an exchange filing. The changes are in connection with nomination of two directors on the board by Sumitomo Mitsui Banking Corporation and one director by SBI.

The changes in the board would take effect after Japan-based SMBC acquires stakes of SBI and other seven banks in Yes Bank.

On May 9, Yes Bank had disclosed that SMBC planned to buy 20% through a secondary stake purchase, including 13.19% from State Bank of India and 6.81% from seven other lenders like Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

Earlier this month, the proposed deal got approval of the Competition Commission of India. Last month, the RBI also granted approval for the deal, clarifying that SMBC would not be categorised as a promoter.

Yes Bank stock rose as much as 1.78% during the day to Rs 21.14 apiece on the NSE. It was trading 1.06% higher at Rs 20.99 apiece, compared to an 0.05% advance in the benchmark Nifty 50 as of 10:42 a.m.

It had declined 11.84% in the last 12 months and 7.20% on a year-to-date basis. The total traded volume so far in the day stood at 2.0 times its 30-day average. The relative strength index was at 56.19.

None of the 11 analysts tracking the company have a 'buy' rating on the stock, two recommend a 'hold' and nine suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 17.7, implying a downside of 15.7%.