Yes Bank shares went up by 2% to ₹21.24 on June 4 after its board approved a ₹16,000 crore fundraising plan. The money will be raised through a mix of equity and debt in multiple tranches.
Out of the total, ₹7,500 crore will be raised via equity shares, while ₹8,500 crore will come from issuing debt securities—either in Indian or foreign currency. Of course, this still needs a green signal from shareholders and regulators.
What Does This Mean for You?
In simple words: Yes Bank is trying to bulk up its balance sheet. A healthier bank means better services, more credit flow, and a stronger position in India’s fast-growing economy. If you’re a customer, it could mean more stability. If you’re an investor, well, you’re already seeing the stock move.
The Real Game-Changer: Japan’s SMBC Steps In
But here’s the real twist—Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is about to become the new big boss at Yes Bank.
SMBC will pick up a 20% stake, buying out shares from several heavyweight Indian banks. This includes State Bank of India (SBI), which is offloading 13.19% of its stake for about ₹8,890 crore. The remaining 6.81% will come from HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra, IDFC First Bank, Federal Bank, and Bandhan Bank.
SMBC’s total investment? Around ₹13,484 crore. That makes it Yes Bank’s largest shareholder. SBI will fall to second place with a 10.8% stake, while the rest of the banks together will hold just 2.9%.
Also Read The Ultimate Turnaround? Yes Bank’s Rs 16,000 Cr Plan & SMBC’s Vote of Confidence!
From Near-Collapse to Comeback Kid
Yes Bank’s rescue story is a wild one. Back in 2020, the bank was on the verge of collapse. A group of India’s top banks jumped in to save it. Now, in just a few years, it’s attracting Japanese giants and gearing up for major expansion.
And here’s the thing—this isn’t just about money. It’s about trust. Big foreign investors don’t write ₹13,000 crore cheques unless they see real potential.
Strong Q4 Numbers Add to the Buzz
Adding to the optimism, Yes Bank posted a 63.3% year-on-year rise in net profit for the March quarter, clocking ₹738.1 crore.
- Net interest income was up 5.7% to ₹2,276.3 crore.
- Gross NPA stayed at 1.6%, while net NPA improved to 0.3% from 0.5%.
That’s not flashy, but it’s solid—and solid is sexy when you’re rebuilding a bank.
Yes Bank’s latest moves show it’s no longer playing defense. With SMBC in the driver’s seat and fresh capital flowing in, the bank is ready to punch above its weight. From crisis to comeback—this could be India’s boldest banking reboot yet.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
Also Read BIG MONEY MOVE: Adani Airports Secures Whopping $750M from Global Banks!
