Yes Bank Share Price: Private Lender's Stock Falls 8.5% On Heavy Trading – What Spooked Investors?

Shares of Yes Bank Ltd fell sharply on Tuesday, closing 8.47% lower at Rs 21.30 on the NSE. This came after a heavy trading session, where 97.45 lakh shares changed hands — nearly 3% of the total listed shares of the bank. The traded value stood at Rs 2,108.74 crore.

This sharp drop came despite recent positive news around the bank, including a potential investment from Japan's Sumitomo Mitsui Financial Group (SMFG).

Why the Stock Fell

Media reports suggested that SMFG, which is acquiring a 20% stake in Yes Bank, was seeking permission from the Reserve Bank of India (RBI) to set up a wholly owned subsidiary — possibly as part of a plan to take control of Yes Bank.

However, Yes Bank responded quickly, stating that it was not involved in such discussions and that reports of talks with the RBI are factually incorrect.

"The Bank is not privy to discussions about matters stated in the article. Further, references to the Bank having ‘road map’ discussions with the RBI are factually incorrect. The Bank will comply with the requirements of Regulation 30 of the Listing Regulations, as and when required," the bank said in exchange filings.

This clarification may have disappointed investors, leading to the sell-off.

Yes Bank Share Price Surges 31% In A Month: What’s Fueling Rally And What Should Investors Do?

Fundraising Plans in Focus

Yes Bank has also informed the exchanges that its Board will meet today, on June 3, 2025, to consider raising fresh funds through equity shares, debt, or other instruments. While this move may support long-term growth, it could also lead to short-term dilution concerns, possibly pressuring the stock.

Sumitomo Deal Still Seen as Positive

Last month, SMFG announced its plan to acquire a 20% stake in Yes Bank from a group of lenders led by SBI, valuing the bank at around $8 billion. Analysts, including Fitch Ratings, see this deal as a sign of recovery for Yes Bank, which was rescued in 2020.

Fitch highlighted that the entry of a major foreign bank could boost confidence in India’s banking sector and attract more foreign investment.

Yes Bank Share Price History

Yes Bank’s stock has been on a roller-coaster ride. Over the past year, it has dropped by 9.60%, though it has shown improvement in the short term with gains of 0.71% in the past week and 2.21% over the last two weeks. Over a longer 3-year period, the stock has delivered a strong return of 60.85%, signalling some recovery.

However, it is still down 23.86% over five years and a massive 87.17% over the last decade, reflecting the deep impact of its earlier crisis. The stock’s 52-week range is between Rs 16.02 and Rs 27.41, and the bank currently has a market capitalisation of Rs 66,516.34 crore, with a free float market cap of Rs 40,020 crore.