YES Bank has announced that its Board of Directors will meet on Tuesday, June 3, 2025, to consider a proposal for raising capital through the issuance of equity shares, debt securities, or other eligible financial instruments.
According to the company's release on May 28, the fundraising may be executed via private placement, preferential allotment, or other approved modes, subject to requisite regulatory and shareholder approvals.
The announcement comes just weeks after State Bank of India (SBI) revealed plans to offload a significant portion of its stake in YES Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC).
According to an earlier exclusive report by Moneycontrol, SBI, currently holding a 23.97 percent stake, is likely to sell up to 20 percent of its holding to SMBC. The Japanese banking giant is also expected to infuse fresh capital into YES Bank equivalent to an additional 6–7 percent stake.
If the fund infusion materialises, SMBC may be required to make an open offer to YES Bank shareholders, potentially raising its total stake to as high as 51 percent, which would mark a transformative shift in the bank’s ownership and control.
Importantly, as per the agreement between SMBC and YES Bank, the Japanese lender is obligated to participate in any equity raise conducted by the bank in order to maintain its 20 percent stake.
In compliance with Regulation 29(1), Regulation 50(1), and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, YES Bank has formally informed the stock exchanges about the board meeting, the release said.
The notice also aligns with the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the bank’s internal Code of Conduct, under which the trading window for designated persons and their immediate relatives has been closed from May 29, 2025, until June 5, 2025, which is two days after the board meeting.
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