Yes Bank has been in the spotlight many times, some good, some not so good. After its 2020 crisis and the RBI-led reconstruction involving big-name Indian banks stepping in, Yes Bank has spent the last few years cleaning up its balance sheet and reworking its strategy.
Cut to June 2025, and Yes Bank has made a big announcement: a plan to raise ₹16,000 crore through a mix of equity and debt. This time, the mood in the market is more optimistic. The Yes Bank share price saw a mild but positive reaction, up nearly 2% on the BSE, hitting ₹21.24 intraday.
But what’s behind this move? And more importantly, what does it mean for investors?
Fundraising split: Where the ₹16,000 crore is coming from
The fundraising plan is broken into two parts, equity and debt, with a clear cap on how much shareholders will be diluted.
| Instrument | Amount (₹ crore) | Details |
| Equity | 7,500 | Via equity securities, with dilution capped at 10% |
| Debt | 8,500 | In Indian or foreign currency, across multiple instruments |
The 10% dilution cap includes conversions of convertible debt. This shows that while Yes Bank is raising capital, it’s trying not to upset existing shareholders too much.
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The SMBC factor: A global vote of confidence
Yes Bank’s fundraising plans are closely tied to a major strategic investment from Sumitomo Mitsui Banking Corporation (SMBC), Japan’s second-largest banking group.
On May 9, 2025, Yes Bank signed a deal allowing SMBC to buy a 20% stake in the bank for ₹13,483 crore, the largest cross-border investment ever in India’s financial sector. Here’s how the stake sale broke down:
| Seller | Stake Sold (%) | Amount (₹ crore) |
| SBI | 13.19 | ₹8,889 |
| Other Banks | 6.81 | ₹4,594 |
| Total to SMBC | 20.00 | ₹13,483 |
As part of the agreement:
- SMBC can nominate 2 directors to Yes Bank’s board.
- SBI will have the right to nominate 1 director.
- SMBC also gets pre-emptive rights to maintain its holding in future fundraises.
All this depends on RBI and shareholder approvals, but it’s a major shift in how the bank is governed and where it’s headed.
You may also read: YES Bank Gains on SMBC Stake Talks, Slips from Highs
Recent exits: Carlyle trims stake
Just before the fundraising announcement, Carlyle Group, a major US-based investor, sold a 2.6% stake in Yes Bank for ₹1,775 crore. The shares were sold between ₹21.61 and ₹21.68 per share. Carlyle’s holding dropped from 6.84% to 4.22%.
Whether this was timed profit-taking or a lack of conviction in the long-term story, the move added some caution to the overall excitement.
How did the bank perform in Q4 FY25?
Alongside fundraising news, Yes Bank also posted a solid set of Q4 results. Here’s how the numbers stack up:
| Metric | Q4 FY25 | YoY Change |
| Net Interest Income | ₹2,276 crore | +5.7% |
| Net Interest Margin | 2.5% | Improved |
| Non-Interest Income | ₹1,739 crore | +10.9% |
| Provisions | ₹318 crore | -32.5% |
| Gross NPA | 1.6% | Stable |
| Net NPA | 0.3% | Improved |
| Advances (YoY) | ₹2.46 lakh crore | +8.1% |
| Net Profit | ₹738 crore | +63.3% |
| Deposits (YoY) | ₹2.85 lakh crore | +6.8% |
In short, Yes Bank’s financial health is improving, and with more capital in hand, they’re likely to push harder on growth in loans and digital offerings.
What’s been happening to Yes Bank share price?
Let’s take a quick look at the performance of the Yes Bank share price over various time frames:
| Time Period | % Change |
| 1 Month | +18% |
| 3 Months | +29% |
| YTD (2025) | +7% |
| 1 Year | -4% |
| 2 Years | +28% |
| 3 Years | +59% |
While the recent gains are decent, the 1-year return is still negative. That’s part of what makes investors cautious, even though the bank has made steady progress.
What are analysts saying?
It’s a mixed bag.
- SAMCO Securities says the stock is trading in a tight ₹20–₹23.39 range, and for long-term investors, the recommendation is to accumulate below ₹19 if the bank continues to improve.
- Trendlyne reflects a more conservative tone: their 1-year target price is ₹16.45, indicating a 22% downside. Out of 12 analysts, the consensus rating is SELL.
So while SMBC’s entry brings in credibility and capital, analysts are watching to see if the growth and profitability story really holds up.
You may also read: NBCC share price rises after robust Q4FY25 results
Conclusion
The combination of SMBC’s strategic investment, strong quarterly performance, and a clearly structured fundraising plan gives Yes Bank some real momentum heading into FY26. Yes Bank is shifting in tone, from survival to growth.
Still, investors should track:
- How the ₹16,000 crore is deployed
- What role does SMBC play in governance
- Whether Yes Bank can maintain profit growth without heavy provisioning
For now, the Yes Bank share price is reflecting cautious optimism, but the real test is in how this fresh capital is used.
