Yes Bank shares gain as board approves Rs 16,000 cr fund raise via debt, equity mix

Yes Bank shares in negative territory over the past month

Shares of Yes Bank gained 2 percent to Rs 21.24 per share on June 4 after its board approved fundraising plan of Rs 16,000 crore through a combination of debt and equity issuances.

The private lender plans to raise Rs 7,500 crore via equity issuance and Rs 8,500 crore through eligible debt securities denominated in Indian or foreign currency, in one or more tranches. Both modes of fundraising are subject to shareholder approval and other regulatory and statutory clearances.

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This capital-raising move comes shortly after the bank, on May 9, announced that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) would acquire a 20 percent stake from existing shareholders. The sellers include State Bank of India and other major lenders such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank—all of whom were part of Yes Bank’s rescue consortium in 2020.

SBI will offload its 13.19 percent stake for nearly Rs 8,890 crore, while the remaining lenders will divest a combined 6.81 percent, enabling SMBC to reach a 20 percent holding in the bank. This brings SMBC’s total investment in Yes Bank to approximately Rs 13,484 crore.

Post-transaction, SMBC will emerge as the largest shareholder in Yes Bank with a 20 percent stake, followed by SBI at 10.8 percent, and the other investor banks collectively holding 2.9 percent.

For the March quarter, Yes Bank reported a 63.3 percent year-on-year increase in net profit, reaching Rs 738.1 crore. Net interest income rose by 5.7 percent to Rs 2,276.3 crore. The gross non-performing asset (GNPA) ratio stood unchanged at 1.6 percent compared to the December quarter, while the net NPA improved to 0.3 percent from 0.5 percent sequentially.

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