Yes Bank shares: Yes Bank shares rallied 1.87% to hit an intraday high of ₹21.24 on the BSE a day after its board approved raising ₹16,000 crore through a mix of equity and debt to fund business growth.
The board approved raising of funds by issuance of eligible equity securities through various permissible instruments, provided that the aggregate amount to be raised by issuance of such securities does not exceed ₹7,500 crore and does not result in an aggregate dilution of more than 10% (including dilution on account of issuance of equity securities and conversion of any convertible debt securities approved by the board in terms of this item).
The board also gave its approval to raise funds through issuance of eligible debt securities in Indian or foreign currency, provided that the total amount to be raised by issuance of such securities does not exceed Rs 8,500 crore and does not result in an aggregate dilution of more than 10%, it informed.
According to the filing, the board also approved amendments to the articles of association of the bank as per the terms of the share purchase agreement executed on May 9 between the bank, Sumitomo Mitsui Banking Corporation (SMBC) and State Bank of India (SBI), which will be subject to the approval of the Reserve Bank of India and the shareholders of the bank. The rights of SMBC and SBI that are proposed to be included in the articles of association of the bank are subject to fall-away thresholds of 10% and 5%, respectively.
As per the amended articles of association, SMBC or any of its permitted assignees will have the right to nominate two non-executive and non-independent directors for appointment to the company board, subject to applicable laws. SBI will have the right to nominate one non-executive and non-independent director for appointment to the board, the filing said. Last month, SBI and seven other lenders announced that they would sell 20% of their combined stake in Yes Bank to Japan’s SMBC for a consideration of ₹13,483 crore, making it the largest cross-border investment in the Indian banking sector.
After the completion of the transaction, SMBC will become the largest shareholder of Mumbai-based Yes Bank. Out of the 20% stake, SBI will sell 13.19% stake in Yes Bank in favour of SMBC for ₹8,889 crore, while 6.81% shareholding will be sold by seven other lenders – Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank – for about ₹4,594 crore.
SBI and seven other lenders had invested in the bank in March 2020 as part of the Yes Bank reconstruction plan. Mumbai-headquartered SBI, which held a 24% stake in Yes Bank, will be left with a little over 10% stake after the dilution.
SMBC is a wholly-owned subsidiary of Sumitomo Mitsui Financial Group, Inc. – Japan’s second-largest banking group with total assets of $2 trillion as of December 2024 and strong global presence. Meanwhile, in a separate announcement, Yes Bank’s Nomination and Remuneration Committee has approved the allotment of 18,35,001 shares of face value ₹2 each on June 03, 2025 pursuant to the exercise of 18,35,001 stock options under the YBL PESOP 2020 scheme.
Yes Bank Q4 FY25 Results
Yes Bank reported a net profit of ₹738 crore for the quarter ended March 2025 (Q4 FY25), marking a 63% rise from ₹452 crore in the same period last year. The sharp jump in net profit came on the back of lower provisioning. The bank’s provisions for bad loans declined to ₹318 crore as against ₹471 crore in the year-ago period.
Yes Bank’s net interest income, or the difference between interest earned on loans and spent on deposits, stood at ₹2,276.36 crore, up nearly 6% from ₹2,153 crore in the same period last year. The Mumbai-based lender’s asset quality remained stable at the end of the March quarter as its gross non-performing assets (NPAs) as a percentage of total advances remained unchanged sequentially at 1.60%. In absolute terms, gross NPA stood at ₹3,935.61 crore.
