Yes Bank gets a "yes"

Shares of Yes Bank rallied sharply today, rising 8.4% to Rs.24.30, marking a fresh 52-week high, amid heavy volumes and sustained institutional buying. The stock has now gained 16% over the past nine sessions, extending its October return to 12.5%, driven by optimism around Sumitomo Mitsui Banking Corporation’s (SMBC) increased shareholding and recent rating upgrades.

Last month, Japan’s SMBC completed the acquisition of a 24.22% stake in Yes Bank from SBI and other bank investors.Currently, SMBC has become Yes Bank’s largest shareholder, while SBI continues to hold a significant stake of over 10%. 

Our Editor, Mr.SP Tulsian is of the opinion that the increased foreign institutional participation will strengthen corporate governance, enhance perception, and lend greater credibility to Yes Bank’s ongoing turnaround efforts. The market is rewarding the stability and strategic anchorage that SMBC brings, alongside balance-sheet improvement and recent credit-rating upgrades.

Yes Bank’s Q2FY26 business update shows encouraging operational traction. Deposits rose 8% sequentially and 7% year-on-year to Rs.2.97 lakh crore, supported by a 100 bps improvement in CASA ratio to 33.8%, as CASA deposits grew 11% QoQ and 13% YoY. The rising CASA share is expected to ease margin pressures and move the bank closer to its 3% NIM target, from about 2.5% currently. On the lending side, advances grew 4% QoQ and 7% YoY to Rs.2.5 lakh crore, with management continuing to focus on profitable credit expansion rather than chasing volume-led growth. Overall, the Q2FY26 business update indicates that September-quarter earnings could improve sequentially over Q1, with full results due for release on 18 October 2025.