On Friday, Yes Bank shares surged nearly 8.4% to ₹24.3, their highest since September 2024. The stock has now gained 12.5% in October, and for the week, it is up over 9%, marking its best weekly performance since May.

Yes Bank has been in the news lately after Japan's Sumitomo Mitsui Banking Corporation's (SMBC) completed the acquisition of a 24.22% stake from State Bank of India (SBI) and other banks. Since then, the stock has gained over 15%.

What triggered the climb?

The sharp uptick follows several positive triggers, including the completion of SMBC's acquisition. The ₹8,889-crore transaction makes SMBC the largest shareholder, while SBI retains over 10%. The deal also marks the largest cross-border investment in an Indian private-sector bank.

Following the stake sale, four domestic rating agencies, CRISIL, ICRA, India Ratings, and CARE, have upgraded Yes Bank's rating to AA-, its highest since 2020. 

In its September-quarter business update, Yes Bank reported a 3.9% sequential rise in advances to ₹2.5 lakh crore and a 7.9% annual increase in deposits to ₹2.97 lakh crore. The CASA ratio improved to 33.8%. 

In an interview on Thursday, Yes Bank's CEO Prashant Kumar said the bank aims to leverage SMBC's global expertise to expand corporate banking, treasury, and cross-border services while maintaining a balanced loan mix of 60% retail and SME and 40% corporate.

Yes Bank plans to strengthen its technology, wealth management, and distribution network to support long-term growth, targeting 10–12% loan growth in the coming quarters.

What is the retail mood?

Retail sentiment on Stocktwits shifted to 'bullish' from 'neutral' a session earlier.

Year-to-date, the stock has climbed 22.3%.

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