June 3 turned out to be an unfortunate day for Yes Bank. Although it was a Tuesday, it brought a wave of bad news for the private lender. As the market opened, Yes Bank shares faced heavy selling pressure from investors, leading to a sharp fall of 9% in a single trading session.

So what triggered this sudden sell-off? Is there a major change on the horizon for Yes Bank? Is a Japanese bank planning a takeover? And most importantly, how will all this impact your investments?

Let’s break down the entire development in simple terms.

As of the time this news was reported, Yes Bank shares were closed nearly 10% lower at around ₹21. This steep decline wiped out the gains made by the stock over the past three trading sessions. The trigger? A large block deal and speculation about foreign interest in acquiring a stake.

According to CNBC-TV18, a major block deal took place involving 9.4 crore shares, which translates to approximately 3% of Yes Bank’s total equity. The deal was executed at an average price of ₹21.50 per share, amounting to a total value of around ₹202 crore. Block deals of this nature typically involve a large institutional investor either buying or selling a significant stake. In this case, reports suggest a private equity firm exited its position by selling these shares.

This has raised a major question: who sold the shares, and more importantly, why now?

Coincidentally, Yes Bank was scheduled to hold a board meeting on June 3 to discuss raising fresh capital. The bank had already informed the exchanges on May 28 that it would consider proposals to raise funds through equity shares, debt securities, or other financial instruments. In such a context, the exit of a major investor can be a crucial signal.

But the story doesn’t end there.

Adding an interesting twist to the saga, Yes Bank had recently announced that Japanese banking giant Sumitomo Mitsui Banking Corporation (SMBC) was in talks to acquire up to a 20% stake in the Indian lender. The deal is estimated to be worth around ₹13,480 crore. Moreover, reports indicated that SMBC might even plan to increase its investment further in the future and potentially acquire a controlling stake.

On June 2, Economic Times reported that SMBC may seek a license from the Reserve Bank of India (RBI) to operate as a wholly-owned subsidiary in India — a move that could be linked to its takeover strategy. However, Yes Bank quickly issued a clarification, stating that it has no knowledge of any such takeover plans and denied any ongoing discussions with the RBI regarding such a road map.

So, on one hand, reports claim the acquisition process by SMBC is progressing rapidly. On the other hand, Yes Bank has denied these claims publicly. This confusion, combined with the recent block deal and the looming fund-raising activity, led to panic selling in the stock.

Investors are now concerned that both the block deal and capital-raising plans could put downward pressure on the share price in the near term. That said, if the SMBC investment does materialize, it could be a positive signal for the future of Yes Bank — potentially marking a turning point for the bank.

Yes Bank now stands at a critical juncture, with speculation about major deals and ownership changes, while its stock continues to show volatility. Will SMBC actually go ahead with a takeover? Will Yes Bank make a strong comeback? Or is this just another market rumor?

Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisors before making any investment decisions based on the content of this blog. The views and information presented here are based on publicly available sources and do not guarantee future outcomes.