Tue Jun 03 06:00:00 UTC 2025: ## YES Bank Shares Plunge After Denying Acquisition Report

**Mumbai, India -** Shares of YES Bank took a hit on Tuesday, falling 7% after the private lender refuted a media report suggesting Sumitomo Mitsui Banking Corporation (SMBC) was seeking regulatory approval to establish a wholly-owned subsidiary in India, potentially as a precursor to acquiring a controlling stake in YES Bank.

YES Bank issued a clarification stating it was “not privy to discussions in relation to matters stated in the article” and that references to the bank engaging in “road map” discussions with the Reserve Bank of India (RBI) were “factually incorrect.” The stock reacted negatively, dropping to a low of Rs 21.55.

This development follows last month’s announcement of SMBC’s acquisition of a 20% stake in YES Bank from State Bank of India (SBI) and seven other private lenders for Rs 13,482 crore. The initial report suggested that once SMBC obtained approval for its subsidiary, SBI and other lenders would likely sell their remaining 14% stake according to a roadmap discussed with the RBI, a claim YES Bank now denies.

The clarification comes ahead of a YES Bank board meeting scheduled to discuss raising funds through the issuance of equity shares, debt securities, or other eligible securities. SBI is expected to remain a major shareholder with over 10% stake.

SBI and other banks had initially invested in YES Bank as part of a reconstruction scheme in March 2020. While the SMBC transaction was initially viewed as a positive step for YES Bank’s future growth, today’s developments have introduced a degree of uncertainty, leading to investor apprehension.

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