YES Bank Shares Plunge 10% as 150 Crore Shares Change Hands Amid Block Deal Buzz, Fundraising Plans

YES Bank shares tumbled nearly 10% on Tuesday as over 150 crore shares exchanged hands on the BSE and NSE, triggering massive trading volumes and sparking market speculation. The steep fall comes ahead of a crucial board meeting to consider a fundraising proposal and amid clarification issued by the bank over recent media reports.

The stock dropped 9.55% to close at Rs 21.05, down from its previous close of Rs 23.27. This sharp decline erased all the gains accumulated over the past week, pushing the bank’s market capitalization down to Rs 66,000 crore.

Record Trading Volumes

According to exchange data, trading activity was significantly higher than usual:

• NSE: Over 100.24 crore shares traded, worth Rs 2,168.23 crore
• BSE: Around 49.91 crore shares, worth Rs 1,078.14 crore

In total, more than 150.15 crore shares changed hands across both exchanges by 10:45 AM, amounting to a combined transaction value of Rs 3,246.37 crore. This represents 4.8% of YES Bank’s equity and is over 32 times the stock's two-week average trading volume.

PE Exit Speculation & Clarification on SMBC Rumors

Reports from CNBC-TV18 suggest that a private equity (PE) investor may be offloading shares, leading to the spike in volume. However, concrete details regarding the buyer or seller were not confirmed at the time of reporting.

YES Bank also issued a clarification following a media report that Sumitomo Mitsui Banking Corporation (SMBC) was seeking RBI approval to operate a wholly owned subsidiary in India, potentially as a step toward acquiring control of YES Bank. In its exchange filing, the bank denied knowledge of any such development:

“The Bank is not privy to any discussions as reported and references to a 'road map' discussion with RBI are factually incorrect. The Bank will comply with disclosure norms under Regulation 30 of the Listing Regulations as required.”

Background: SMBC Investment and Fundraising Plans

In May 2025, YES Bank had announced a 20% stake sale by State Bank of India and seven other private lenders—including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank—to SMBC. The Japanese financial giant agreed to acquire over 413 crore shares for Rs 13,482 crore, at Rs 21.50 per share.

Meanwhile, YES Bank’s board of directors is meeting today, June 3, 2025, to consider a proposal for raising funds through the issuance of equity shares, debt securities, or other eligible instruments. The fundraising could be conducted via private placement, preferential issue, or a combination of methods.

With the stock under pressure and investor sentiment rattled, analysts advise caution and recommend sticking to fundamentally strong stocks while minimizing exposure to entities vulnerable to geopolitical and macroeconomic uncertainties.