Best day for SBI shares in 21 months, Yes Bank slumps — what's driving the moves on D-Street

SBI share price today: State Bank of India shares clocked their biggest intraday jump in 21 months on Friday, after a report by Reuters, citing sources, suggested the state-run lender may look to cut its stake in Yes Bank after a lock-in period ends on March 13. Yes Bank shares, on the other hand, succumbed to selling pressure. The RBI had imposed the lock-in period till March 13 as a part of the private sector lender's restructuring.

At 10:30 am, SBI shares quoted with a gain of Rs 21.5 or four per cent at Rs 555.3 apiece on BSE, having risen as much as 5.7 per cent to Rs 564 apiece earlier in the day — their biggest intraday gain since May 17, 2021. As many as 8.6 lakh SBI shares changed hands on BSE so far on Friday, as against a daily average of 4.8 lakh in the past two weeks, according to exchange data. 

Yes Bank shares fell 2.4 per cent at the weakest level of the day to Rs 17.1 apiece. 

SBI does not want to permanently retain a stake in Yes Bank and would want to trim its holdings, though in phases, the Reuters report quoted one of the sources as saying on condition of anonymity.

As of December 31, 2022, State Bank of India held a 26.14 per cent stake in Yes Bank, according to shareholding data. SBI had intiially acquired 49 per cent in the private sector bank.  SBI remains the largest single shareholder in Yes Bank.

According to the restructuring plan for Yes Bank, State Bank of India cannot take its holding below 26 per cent before the completion of three years from the date of infusion of capital.

In March 2020, SBI, ICICI Bank, Axis Bank, IDFC FIRST Bank, Kotak Mahindra Bank and HDFC had stepped in to rescue Yes Bank after the RBI superseded its board.

As of December 31, ICICI Bank's shareholding stood at 2.61 per cent, Axis Bank's at 1.57 per cent and IDFC FIRST Bank's at one per cent, LIC's at 4.34 per cent and HDFC's at 3.48 per cent.

In September 2022, Yes Bank had said that the RBI would allow it to exit the reconstruction scheme only after the share lock-in period ends.

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.