Yes Bank Shares Fall 9 Percent After SMBC Clarification and Block Deal
On June 3, Yes Bank shares dropped almost 9 percent after a big block deal was reported and due to confusion over Sumitomo Mitsui Banking Corporation’s (SMBC) investment plans. In the morning, the shares were trading at Rs 21.26 each, ending a three-day rally.
According to TV18, a large block deal took place where around 9.4 percent of Yes Bank’s shares were traded, which is equal to a 3 percent stake. The average price of the deal was said to be Rs 21.5 per share, making the total deal worth about Rs 2,022 crore. It is believed that a major private equity firm may have sold the stake. However, this information hasn’t been officially confirmed.
Yes Bank shares were also in focus today because the bank’s board is meeting to discuss plans for raising funds. Earlier, on May 28, the bank announced that the Board of Directors would meet on June 3, 2025, to consider raising capital. The capital may be raised through equity shares, debt securities, or other financial instruments, depending on regulatory and shareholder approvals.
In another key development, Bank had announced on May 9 that Japanese bank SMBC would buy a 20 percent stake from existing stakeholders like SBI and other Indian banks. These banks had invested in Yes Bank during its 2020 reconstruction. The deal was estimated at Rs 13,480 crore.
Apart from this, SMBC is expected to invest more money in Yes Bank, which could increase its total stake by another 6–7 percent. If this happens, SMBC might have to make an open offer to buy more shares from public investors, which could increase its stake to as much as 51 percent. This would give SMBC majority control and lead to a major change in the ownership of Yes Bank.
On June 2, The Economic Times reported that SMBC plans to approach the Reserve Bank of India (RBI) to get a licence for running a fully owned subsidiary in India. This move is believed to be a part of SMBC’s bigger plan to take control of Yes Bank. Also read: Netflix and Prime Video Users Shocked by June 2025 Update.
However, Yes Bank soon released a clarification. The bank said that it is not aware of any such talks mentioned in the media report. It also said that claims about having a “road map” discussion with the RBI are not true.
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