💀 At a Glance
YES Bank held its board meeting on June 3, 2025, and made a bunch of announcements that looked positive on paper:
- ✅ Approved fundraising via QIP/FPO
- ✅ Discussed “business strategy and growth opportunities”
- ✅ Talked about enhancing shareholder value
But the market? It yeeted the stock down 10% in response.
Why? Because investors have seen this movie before — and it ends with dilution, confusion, and Bhagat Singh Koshyari memes.
📜 What Was Actually Announced?
1. Fundraising Approval
- ✅ Approved issuance of equity shares, convertible securities, or instruments via Qualified Institutional Placement (QIP), FPO, or private placement
- ✅ Amount: Not disclosed
- ✅ Timing: “As and when market conditions permit”
Translation:
“We need cash. We’ll decide later how to take it from you.”
2. Strategic Review & Capital Planning
The bank also said:
“The Board deliberated on business strategy and capital planning to fuel future growth.”
This is corporate speak for:
- Our loan book is stressed
- Our margins are squeezed
- Our capital adequacy is okay… for now
📉 Market Reaction: Pure Panic
| Date | Closing Price | % Move |
|---|---|---|
| June 2 | ₹24.40 | – |
| June 3 | ₹22.00 | –10% |
Investors don’t hate growth. They hate:
- Fundraises without a clear plan
- Revival stories with no earnings traction
- Boards who talk like McKinsey decks while deposits shrink
📊 YES Bank: The Not-So-YES Numbers
| Metric (FY24) | Value |
|---|---|
| Net Interest Income (NII) | ₹8,861 crore |
| Net Profit | ₹1,276 crore |
| CASA Ratio | 30.2% |
| Gross NPA | 2.2% |
| Net NPA | 0.9% |
| Capital Adequacy (CRAR) | ~17.1% |
Yes, they’ve cleaned up books since the Rana Kapoor days — but the profit engine isn’t firing.
🧠 EduInvesting Take
“YES Bank is like that kid who says ‘I’ve changed’ but still asks you for money.”
Let’s be clear. Fundraising isn’t bad. Every bank needs capital.
What’s bad is:
- Vague timelines
- No guidance on dilution
- Zero update on business traction
We’re in FY26 now. If YES Bank is still restructuring capital and “exploring strategy,” then the turnaround arc has hit season 4 filler episode levels.
🧨 Red Flags
- ❌ No clarity on QIP size or dilution impact
- ❌ No earnings upgrade, yet planning expansion
- ❌ Market feels retail investors will be last to know
- ❌ Sentiment echoing 2020 panic flashbacks
🧮 Edu Fair Value (Harsh Reality Edition)
Assume FY26E EPS = ₹2.2
Assign 12–14x P/E for a mid-tier private bank still in rehab
🎯 FV Range = ₹26–₹31
CMP = ₹22
Upside? Exists — but you’ll need iron hands and spiritual patience.
🔚 TL;DR
| 🔍 What Happened | 💣 Why It Matters |
|---|---|
| Fundraise Planned | Dilution Fears |
| Strategy Discussion | No Numbers Shared |
| Stock Crashed | Confidence Crisis |
| Edu Verdict | Still a long way to YES |
Unless YES Bank shows real deposit growth, stable NIMs, and a profitable credit expansion, the market won’t care about their “board deliberations.”
Because right now?
It’s all talk. And a crashing chart.
Author: Prashant Marathe
Date: June 4, 2025
Tags: YES Bank, QIP dilution, bank stock fall, capital raise India, private banks, Rana Kapoor hangover, banking strategy India
