Synopsis:
Yes Bank Ltd. rose 8% in intraday trade, driven by consistent gains, high trading volumes, and surpassing ₹21.5, the price for SMBC’s initial stake. Positive sentiment and growth targets set by the CEO & MD boosted investor confidence.
The shares of a mid-cap company, specializing in a wide array of retail, MSME, and corporate banking and financial services, including deposits, loans, cards, wealth management, digital banking, trade finance, and cash management services, have jumped by up to 8 percent in today’s intraday trade. In this article, we will explore the reasons for the stock’s rally.
With a market capitalization of Rs. 74,822.94 crores on Friday, the shares of Yes Bank Ltd jumped upto 8.3 percent, making a high of Rs. 24.30 per share compared to its previous closing price of Rs. 22.42 per share.
What Happened
Yes Bank Ltd, engaged in a wide array of retail, MSME, and corporate banking and financial services, including deposits, loans, cards, wealth management, digital banking, trade finance, and cash management services, has rallied upto 8 percent in the intraday trade as several reasons are driving the rally.
Yes Bank, a private sector lender, has posted gains in eight out of the last nine trading sessions. This surge has driven the stock towards its strongest weekly performance since May, with a rise of over 10 percent so far this week.
The rally was boosted by increased trading volumes and positive investor sentiment on Friday, with 18 crore shares changing hands, significantly higher than the 20-day average of 3.2 crore shares.
Along with it, the stock’s price has moved above Rs. 21.5, the price at which Yes Bank issued shares to Sumitomo Mitsui Banking Corporation (SMBC) when the Japanese bank acquired its initial stake in the lender. This signifies a positive market response, as the stock has surpassed a key benchmark level, reflecting growing investor confidence and potential future growth.
Additionally, Yes Bank’s MD & CEO indicated confidence in meeting its targets, including achieving a 1 percent Return on Assets (RoA) by FY2027 and a 10-12 percent credit growth target for the year, fueling optimism.
Financial & Others
The company’s revenue declined by 1.56 from Rs. 7,725 crores to Rs. 7,605 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 516 crores to a profit of Rs. 809 crores during the same period.
Yes Bank Ltd. is a full-service, Indian private sector bank headquartered in Mumbai, offering a wide range of products and digital services to retail, MSME, and corporate clients. It was founded in 2003 by Rana Kapoor and Ashok Kapur and operates through a network of over 1,488 branches, 1,300+ ATMs, and its digital banking platforms. The bank’s services include traditional banking, corporate and wholesale banking, digital banking, and treasury operations.
It offers a wide range of financial services, including retail banking, wealth management, corporate banking, business banking, and fintech solutions. It has a strong focus on innovation, transparency, and sustainability, aiming to empower individuals and businesses to achieve their potential.
Written by Sridhar J
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