YES Bank shares rally 10% in 3 days. What’s behind the surge?

14 hours ago 14

Synopsis

YES Bank shares have surged 10% over the past three sessions, touching a fresh 52-week high, as investors pile in ahead of quarterly earnings and amid renewed optimism following Japanese lender Sumitomo Mitsui Banking Corporation’s (SMBC) stake purchase.

YES Bank shares rally 10% in 3 days. What’s behind the surge?

On Monday, the stock rose as much as 1% to Rs 24.25 on the BSE. The Mumbai-based lender has recorded gains in nine of the last ten trading sessions, with last week marking its best weekly performance since May.

The rally comes after SMBC acquired a 24.22% stake in YES Bank in September 2025, buying shares from a consortium of lenders including State Bank of India, HDFC Bank, Federal Bank, Bandhan Bank, and CA Basque Investments, an affiliate of Carlyle Group. The Japanese firm now holds 759.51 crore shares, purchased at Rs 21.5 per share, the price at which it first entered the bank.

Traders say crossing that price level has reinforced market confidence in YES Bank’s turnaround prospects, with investors anticipating strategic support from the Japanese lender.

Earnings anticipation keeps sentiment buoyant

Investor focus is now on YES Bank’s Q2 FY26 results, scheduled for October 18. In the September quarter, the bank reported loans and advances rising 3.9% quarter-on-quarter to Rs 2,50,586 crore, while total deposits climbed 7.9% year-on-year to Rs 2,96,831 crore. Analysts say expectations of continued growth in profitability and asset quality are keeping sentiment elevated ahead of the earnings release.
Technical indicators show strong momentum
Technically, YES Bank is trading above all eight key simple moving averages, from the 5-day to the 200-day SMA, signaling sustained bullish momentum. The Relative Strength Index (RSI) at 83.1 suggests the stock is overbought, which could lead to short-term profit-taking. The Moving Average Convergence Divergence (MACD) at 0.5 remains above both the center and signal lines, reinforcing the ongoing upward trend.

Stock performance recovers after 2024 slump

YES Bank shares have gained 16% in the past month and 23% year-to-date, rebounding from a 9% decline in 2024. Last Friday, the stock touched a 52-week high of Rs 24.30 on the BSE, marking the best weekly performance since May.

Market watchers say the rally reflects renewed confidence in the bank’s recovery, but technicals suggest traders may keep a close eye for possible short-term pullbacks ahead of the Q2 earnings announcement.

Also read | TCS, Tata Motors tumble up to 42% from peak, with over Rs 4 lakh crore wiped off Tata stocks in 2025 amid boardroom turmoil

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