Shares of Yes Bank rose over 4% in trade so far on Monday after SMBC received RBI approval to acquire up to 24.99% stake in the company. The RBI approval for SMBC's stake buy is valid for a period of a year. The RBI has also clarified that SMBC should not become 'Promoter.'
Yes Bank Ltd. announced on Aug. 23 that Japan's Sumitomo Mitsui Banking Corporation has received the official approval from the Reserve Bank of India to acquire up to 24.99% stake in the company.
The central bank decided that SMBC would not be treated as a "promoter" of Yes Bank following the deal, which would have involved additional regulatory requirements, according to the Mumbai-based lender.
Yes Bank Share Price
Yes Bank stock rose as much as 4.77% during the day to Rs 20.20 apiece on the NSE. It was trading 2.39% higher at Rs 19.74 apiece, compared to an 0.38% advance in the benchmark Nifty 50 as of 9:39 a.m.
It had declined 19.19% in the last 12 months and 0.51% on a year-to-date basis. The total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 60.7.
Two out of the 11 analysts tracking the company have a 'hold' rating on the stock, while the rest 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 10.4%.
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