Yes Bank’s stock price fell sharply by 9% to ₹21.05 on the BSE in early trading on June 3, 2025, amidst a fluctuating path. During the day, the price mildly recovered to ₹21.33 but still marked an 8.34% decline from the previous closing price at 10:22 AM. This continued drop was a clear indicator of the market’s anxiety regarding the bank’s response to market buzz concerning Sumitomo Mitsui Banking Corporation (SMBC). There was a rumor SMBC was trying to get approval from the RBI to set up a wholly owned subsidiary in India, possibly as a precursor for a hostile takeover of Yes Bank. Yes Bank was also in the news for accusing SMBC of not having dominant discussions, which suffices for legally bound no-slip claims, throwing out Yes Bank’s pummeling shares. Yes Bank also claimed robust counteraccusations for pertaining escalation, which morphed into innuendo and fact labeled unprivileged hierarchy swarm.
Yes Bank’s boom is set for a bombshell right around the time when the board is slated for a meeting on June 3 to discuss options revolving around investments after restructuring the bank’s finances as part of its strategic overhaul. The discussion will focus on the possibility of issuing shares alongside debt securities or alternative forms of financing through private placements or preferential offerings. This kept the stock on the news, with investors tracking if the estimate will be met around whether the bank will seek fresh debt or equity financing to strengthen its capital.
Market Condition and Yes bank
The market situation is not supportive either. The Sensex and Nifty 50 gave a negative indication during early trade, the former falling by 0.28 percent to reach 81,146 and the latter dropping by 0.14 percent to 24,683.15. This was primarily due to geopolitical tensions and incremental policies from the RBI as well as America’s talks with China. Yes Bank has had very volatile movements recently; its stock price shot up by 23 percent in a month due to expectations of SMBC’s 20 percent stake purchase at ₹13483 crores being the largest cross-border transaction in India’s banking sector.
That said, Yes Bank stock’s rally is impressive considering the almost three-year period of stagnation the bank underwent post its bailout by SBI and other lenders in 2020, although the margin of recovery nadir is concerning. The deal was seen as an affirmation of confidence for the SMBC and SBI selling 13.19 percent of its holding, with six other banks selling a 6.81 percent stake, which was seen as, as Moody’s called it, “credit positive” for the realization of a controlling partner with substantial assets attached to his balance sheet. Still, some analysts, such as Kotak Institutional Equities, suggest a sell holding, stating the sharp increase in the bank’s return on assets is unlikely anytime soon.
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For now, investors are left navigating uncertainty. The fundraising announcement could shape the bank’s trajectory, but the market’s reaction to the SMBC clarification suggests sentiment is fragile. As Yes Bank charts its next steps, all eyes are on whether it can leverage its strategic partnerships and capital plans to sustain its recovery momentum.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Investors are advised to conduct their own research or consult with a financial advisor before making investment decisions.
