Yes Bank Ltd witnessed a remarkable surge in its share price on May 9, 2025, as it climbed by 8.29% to reach an intraday high of ₹19.73 on the Bombay Stock Exchange (BSE). This surge has been attributed to growing speculation surrounding a potential investment from Japan's Sumitomo Mitsui Banking Corporation (SMBC), alongside positive financial results from the bank.
The stock opened at ₹17.80, hitting a low of ₹17.77 before rallying to its high of ₹19.73. By 11:13 AM IST, the shares were trading at ₹19.61, reflecting a 7.57% increase on the National Stock Exchange (NSE). Over the past week, Yes Bank's stock has gained nearly 11%, sparking investor interest and optimism.
Market analysts have pointed to several factors fueling this upward momentum. The primary driver has been the speculation regarding a significant stake acquisition by SMBC, which has led to increased buying interest among investors. The trading volume also saw a remarkable uptick, with a combined 311.33 million equity shares changing hands on both the NSE and BSE.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, commented on the situation, stating, "The recent report of a foreign bank acquiring a substantial stake in Yes Bank has been creating some positive momentum on the counter." He further noted that the outlook for the banking, financial services, and insurance (BFSI) sector has been improving, which has contributed to the buying interest in Yes Bank.
Additionally, Amit Goel, co-founder and chief global strategist at Pace 360, mentioned that his asset management company has aggressively purchased shares of Yes Bank, expressing confidence in the bank's future. "I believe this could deliver 15–20% returns in the next few months," he stated, hinting at a potential transformation of Yes Bank into an Indian arm of SMBC, contingent on regulatory approvals.
Yes Bank has clarified that it routinely engages with various stakeholders as part of its growth strategy, but the discussions regarding SMBC are still in preliminary stages and do not warrant immediate disclosure. Despite this, the buzz around a possible investment has significantly lifted market sentiment.
As of now, the market capitalization of Yes Bank stands at ₹61.39K crore, with a price-to-earnings (P/E) ratio of 25.14. The stock has shown a wide range in its 52-week performance, with a high of ₹27.44 and a low of ₹16.02. Investors are advised to keep an eye on several key developments that could affect the stock's future performance.
Investors should watch for official confirmation regarding the potential investment from SMBC, as well as details about the deal structure, including the size of the investment and shareholding terms. Regulatory approvals will also play a critical role, as any foreign investment in Indian banks requires clearance from the Reserve Bank of India (RBI).
In the broader market, other banking shares have also rallied, with Union Bank of India seeing a 6% increase to ₹122.80 on the NSE. The Nifty PSU Bank index, which includes several public sector banks, bounced back by 3% from its intra-day low, reflecting a positive sentiment in the banking sector despite recent volatility.
However, the recent performance of Yes Bank should be approached with caution. Investors are advised to wait for official news and evaluate the risks associated with investing in a bank that has a history of volatility. The fundamentals of the bank, including its financial performance and asset quality, should be carefully considered before making investment decisions.
Looking ahead, Yes Bank's stock performance will largely depend on the confirmation of the investment deal, the bank's business performance in upcoming quarterly results, and any regulatory developments that could impact the potential deal.
As the situation develops, investors should stay updated with the latest news regarding Yes Bank and make informed decisions based on accurate information rather than speculation. With the current buzz surrounding the potential investment from SMBC, it appears that Yes Bank is on a growth trajectory, and the coming months will be crucial for the bank's future.
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