Breaking: Yes Bank Shares Crash 11% Amid Acquisition Speculation
In a dramatic market movement, Yes Bank shares plummeted 11% in early trading today following rumors of a potential stake acquisition by Japan’s Sumitomo Mitsui Banking Corporation (SMBC). The stock hit an intraday low of ₹22.35 on the NSE before the bank issued an official clarification, helping it recover slightly to ₹23.80 by afternoon.
Key Developments at a Glance
| Metric | Details |
|---|---|
| Current Price (3:30 PM) | ₹23.80 (-8.5%) |
| Intraday Low | ₹22.35 (-11%) |
| 52-Week Range | ₹35.20 – ₹21.75 |
| Trading Volume | 48.7 million shares (3.5x average) |
| Market Cap Impact | Lost ₹5,200 crore in value |
Why Did Yes Bank Shares Crash Today?
1. SMBC Stake Acquisition Rumors
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Early market reports suggested SMBC was considering acquiring up to 15% stake in Yes Bank
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Speculation indicated a potential ₹5,000 crore investment at ₹18-20 per share (20-25% discount)
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Similar rumors in 2023 about Carlyle Group had caused a 15% single-day drop
2. Yes Bank’s Official Clarification (1:15 PM IST)
The bank issued an exchange filing stating:
“Yes Bank clarifies that it is not in any discussions with SMBC or any other global bank for stake sale. The news circulating is purely speculative. The bank remains focused on its growth strategy.”
3. Broader Market Sentiment
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Banking index (Nifty Bank) down 1.8% today
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Rising concerns about retail NPAs across sector
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FII selling in financial stocks continues (₹2,100 crore outflow this week)
Analyst Reactions: Diverging Views
Bearish Perspective
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Macquarie Research: “Maintain UNDERPERFORM with ₹19 target. Asset quality concerns persist.”
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Technical View (ICICI Direct): “Break below ₹23 opens door for ₹18-19 levels. Avoid catching falling knife.”
Bullish Counterpoints
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Morgan Stanley: “Correction overdone. Maintain OVERWEIGHT with ₹32 target on improving ROA.”
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Fundamental View (HDFC Securities): “Retail deposits grew 21% YoY. Core banking metrics improving.”
Financial Health Check (Q1 FY26 Estimates)
| Parameter | Q1 FY26 (Est.) | Q4 FY25 | Change |
|---|---|---|---|
| Net Profit | ₹420 crore | ₹380 crore | +10.5% |
| NII | ₹2,250 crore | ₹2,110 crore | +6.6% |
| GNPA Ratio | 1.9% | 2.1% | -20 bps |
| CASA Ratio | 31.2% | 30.8% | +40 bps |
Key Concerns:
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Slippages in SME portfolio (₹650 crore in Q4)
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Credit costs remain elevated at 1.2%
Historical Context: Yes Bank’s Rollercoaster Journey
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2018-2020: Collapse from ₹400 to ₹5 during NPA crisis
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2020: RBI-mandated reconstruction (SBI-led consortium)
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2023: Carlyle-Advent invest ₹8,900 crore at ₹14.82/share
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2024: Stock peaks at ₹35.20 in April 2025
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Today: 11% crash on SMBC rumors
What Should Investors Do Now?
Short-Term Traders
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Wait for stabilization above ₹24 (200-DMA)
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Next support at ₹21.75 (2025 low)
Long-Term Investors
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Monitor Q1 results (July 28) for asset quality trends
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Accumulate only if CASA growth sustains above 30%
Potential SMBC Interest?
While denied today, analysts note:
“Strategic partnerships remain possible given Yes Bank’s improved digital infrastructure and retail network.”
Prabhudas Lilladher
Sector-Wide Impact
| Stock | Today’s Change | Reason |
|---|---|---|
| Federal Bank | -3.2% | Contagion effect |
| Bandhan Bank | -4.1% | NPA concerns |
| HDFC Bank | -0.8% | Sector weakness |
Conclusion: High-Risk, High-Reward Proposition
Yes Bank remains one of India’s most volatile banking stocks:
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Upside Potential: Digital transformation, improving ROA
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Downside Risks: Legacy NPAs, dilution fears
Key Levels to Watch:
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Resistance: ₹25.50 (50-DMA)
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Support: ₹21.75 (Yearly low)
Disclaimer: This is not investment advice. Please consult your financial advisor before making any decisions.
Sourashis Chanda brings readers their unique perspective on Business, Economy, Health and Fitness. With a background in Health and Physical Fitness of 2years, I am dedicated to exploring [what they aim to achieve with their writing, on the sustainable Economy of the country, various pro tips about business, latest goverment news, with some tips in health are and Fitness.
- Sourashis Chandahttps://indiatadkha.com/author/sourashis/
- Sourashis Chandahttps://indiatadkha.com/author/sourashis/
- Sourashis Chandahttps://indiatadkha.com/author/sourashis/
- Sourashis Chandahttps://indiatadkha.com/author/sourashis/
