Yes Bank’s shares dived by almost 10% at some point during the trading day on the 3rd of June 2025 when the bank had to witness a significant fall in its rates of exchange. The minimum value of the stock on the BSE trading platform was ₹21.05, which was a sharp turn from the last upward move of the price.
Reasons for Stock Deduction
1. Transfer of Shares through the Block Deals 3% of Equity
One of the calamitous reasons for the stock’s decrepitude was the execution of really big block deals, which involved a symbolic transfer of nearly 3% Yes Bank’s equity. These transactions, estimated to be worth ₹2,022 crore, transpired at a mean price of ₹21.50 per share. The quantum and character of these operations gave rise to qualms among the investors about potential changes in the ownership structure of the bank.
2. Denial of SMBC Interest in Stake Purchase
Rumors were swirling that Sumitomo Mitsui Banking Corporation (SMBC) had plans to acquire a controlling stake in Yes Bank. Though, Yes Bank has been quick to act in giving a prompt clarification, which said that they were not talking to SMBC about the matter and that it was not true that there was a ‘road map’ with the Reserve Bank of India (RBI). The clarification immediately killed the investors’ hopes of a major inflow of money from abroad and so the stock fell.
Backstory: SMBC's Stake Buy in Yes Bank
In 2025, in May, Yes Bank publicly revealed its mutual agreement with SMBC, which would see the latter acquire a fifth of the bank’s shares from other investors, which entailed names like the State Bank of India (SBI) and seven private banks, for an approximate total of ₹13,482 crore. The acquiring thus made SMBC the most significant minority shareholder of Yes Bank, with the share price being fixed at ₹21.50 per share. The covenant was perceived a massive step towards both recovery and expansion by the bank.
Backstory: SMBC's Stake Buy in Yes Bank
Yes Bank’s Board of Directors is fixed to have a session on the day to discuss the options of raising funds through issuing shares, debt securities, bonds, or other financial devices that are legally acceptable. The initiation of funds may also be performed by private placement, followed by preferential allotment, or through other means as allowed, providing that it complies with regulatory and shareholder necessities. The meeting’s results are expected to be a source of clarity regarding the bank’s strategic path and capital needs
Board Meeting on Fundraising Planned for the Future
The Board of Directors of Yes Bank is to see the light of the day later and discuss proposals regarding the raising of funds for the company viasellingoffequity shares, debts, or other eligible financial tools. This meeting may involve private placement, preferential allotment or other means of subscription, after obtaining the necessary regulatory and shareholder permissions, as the case may be. It is expected that the consequence of the session will unveil the specifics of the direction of the bank’s future and the amounts of capital needed.