YES Bank shares surged by 2% on Tuesday following the bank’s announcement that its board of directors has approved a fundraising proposal of up to ₹16,000 crore. The capital will be raised through various instruments, including equity shares, convertible securities, Qualified Institutional Placement (QIP), rights issue, or private placement.
In an official filing to the stock exchanges, the private lender stated that the fundraising is subject to shareholder and regulatory approvals. The move is aimed at enhancing the bank’s capital adequacy, expanding its lending capacity, and supporting long-term business growth.
“The board of directors at its meeting held on June 3, 2025, approved the proposal to raise funds for an aggregate amount not exceeding ₹16,000 crore,” the bank said in its BSE filing.
YES Bank’s Managing Director and CEO, Prashant Kumar, emphasized that the fresh capital infusion would help the bank strengthen its balance sheet and support future expansion. “This step aligns with our long-term strategy to improve capital position, enhance operational efficiency, and build a stronger financial foundation,” he said.
Following the announcement, YES Bank’s stock rose 2.04% to close at ₹24.15 on the Bombay Stock Exchange (BSE). The positive response from investors reflects optimism regarding the bank’s financial health and growth potential.
Market experts believe that the fundraising will allow YES Bank to meet the increasing credit demand across retail, corporate, and MSME segments while improving its risk coverage. Analysts also highlighted that the timing of the fundraising, amid stabilizing macroeconomic conditions, adds to its strategic value.
“This is a much-needed move for YES Bank. It not only reinforces the bank’s capital buffers but also signals strong intent from the management to pursue growth while maintaining regulatory compliance,” said an analyst at ICICI Securities.
YES Bank, which underwent a restructuring exercise in 2020 under the supervision of the Reserve Bank of India (RBI), has shown steady signs of recovery over the past few years. The bank’s gross non-performing assets (NPAs) have reduced significantly, and it has improved profitability and governance practices.
With improved investor confidence and a clear growth roadmap, the bank aims to enhance shareholder value and consolidate its market position in India’s competitive banking sector.
The ₹16,000 crore capital raise marks one of the largest funding plans by a private sector bank in recent years and could serve as a foundation for YES Bank’s next phase of transformation.
