Tue Jun 03 04:00:00 UTC 2025: **Yes Bank Shares Plunge Amid Block Deals and Fundraising Speculation**
**Mumbai, India** – Shares of Yes Bank experienced a sharp decline of 7.4% on Tuesday, hitting an intraday low of Rs 21.55, following reports of significant block deals early in the trading session on the BSE. Approximately 3% of the bank’s equity is estimated to have changed hands in these transactions.
While the identities of the buyer and seller remain undisclosed, CNBC TV-18 reported that a private equity investor is believed to be the seller. The details surrounding the transaction are currently unclear.
The stock’s volatility follows a surge on Monday, where Yes Bank shares rallied over 8% fueled by media reports suggesting that Sumitomo Mitsui Banking Corporation (SMBC) was seeking regulatory approval to establish a wholly-owned subsidiary, a move initially interpreted as a precursor to acquiring a controlling stake in Yes Bank.
However, Yes Bank swiftly refuted these reports, stating it was “not aware of any such discussions” and that references to “roadmap” discussions with the Reserve Bank of India (RBI) were “factually incorrect.”
The board of Yes Bank is scheduled to meet today to discuss fundraising proposals. These proposals include the potential issuance of equity shares, debt securities, or other instruments through private placements or preferential issues. This meeting comes on the heels of SMBC’s recent announcement to acquire a 20% stake in Yes Bank from a consortium of lenders led by the State Bank of India (SBI), a deal valuing the bank at over $8 billion. This consortium had rescued Yes Bank in 2020 from a severe liquidity crisis.
The stock had closed 8% higher on Monday at Rs 23.22 and the stock has surged nearly 30% in the past month.
Yes Bank recently reported strong Q4FY25 results, posting a 63.3% YoY increase in net profit to Rs 738 crore, driven by reduced provisions and stable asset quality. The bank’s gross NPA was stable at 1.6%, and net NPA fell to 0.3%. The bank’s board also approved a fundraising plan, underscoring confidence in its growth strategy.
Yes Bank, founded in 2004, is a private sector bank headquartered in Mumbai, offering a comprehensive range of banking and financial services. The recent fluctuations in its share price highlight the ongoing investor interest and uncertainty surrounding the bank’s future strategic direction.
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