Yes Bank spurts on fund raising plan

Yes Bank surged 5.82% to Rs 22.72 ahead of its board meeting scheduled for 3 June 2025, where it will discuss plans to raise capital through equity, debt, or a mix of instruments.

In its 28 May exchange filing, the bank said the board will consider raising funds via equity shares, debt securities, or other eligible instruments -- either convertible or non-convertible -- through routes like private placement, preferential issue, or any other approved method.

Adding to the buzz, media reports indicate that Japan?s Sumitomo Mitsui Banking Corporation (SMBC) is gearing up to seek the Reserve Bank of India (RBI)'s nod for a wholly-owned subsidiary in India. This step is widely seen as part of SMBC's strategy to eventually acquire a controlling stake in Yes Bank.

On 9 May 2025, SMBC signed a definitive agreement to buy a 20% stake in Yes Bank via secondary market transactions: 13.19% from SBI and 6.81% from a consortium of investor banks that includes Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

SMBC, the banking arm of Sumitomo Mitsui Financial Group, is a major global financial player with a strong presence across Asia.

As of March 2025, SBI holds the largest stake in Yes Bank at 23.97%, followed by smaller stakes from HDFC Bank (2.75%), ICICI Bank (2.39%), Kotak Mahindra Bank (1.21%), Axis (1.01%), IDFC First Bank (0.92%), Federal Bank (0.76%), and Bandhan Bank (0.70%). Post SMBC deal, SBI's shareholding will reduce to 10.78%. SBI and the investor banks stepped in to rescue Yes Bank under a government-backed reconstruction plan in March 2020.

Yes Bank, a full-service commercial bank headquartered in Mumbai, offers a wide array of products, services, and digital solutions, catering to retail, MSME, and corporate clients.

In Q4 FY25, Yes Bank reported a 63.34% jump in standalone net profit to Rs 738.12 crore, while total income rose 3.76% YoY to Rs 9,355.39 crore.

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