Yes Bank Shares Surge: Will Japanese Bank SMBC Increase Its Stake?

• Yes Bank's stock jumped 2.75% after RBI approved Sumitomo Mitsui Banking Corporation (SMBC) to operate as a subsidiary in India.
• SMBC currently holds a 24.99% stake in Yes Bank, leading to speculation about a potential increase in its shareholding.
• Operating as a subsidiary indicates a foreign bank's long-term commitment, offering local decision-making and tax benefits.
• SMBC's group company, SMFG India Credit, is strong in retail and SME loans, a segment where Yes Bank has faced challenges.
• Future focus for investors will be on Yes Bank's growth, management strategy, and the succession plan for CEO Prashant Kumar.

Why It Matters: RBI's approval for SMBC's subsidiary status fuels speculation about increased Japanese investment in Yes Bank.