Abhishek Sinha
Mumbai, October 10, 2025: Shares of Yes Bank extended their rally on Friday, rising 8.4% to touch a new 52-week high of ₹24.30 apiece during intraday trade. The stock has now climbed 12.5% in October and gained nearly 16% over the last nine trading sessions, driven by strong investor sentiment and a series of positive corporate developments.
Strong Momentum and Weekly Gains
Yes Bank shares have closed higher in eight of the past nine sessions, putting the stock on track for its biggest weekly gain since May 2025, when it had advanced 13.11%. So far this week alone, the stock is up around 9.3%, reflecting growing confidence among investors.
Key Drivers Behind the Rally
The latest uptrend in Yes Bank’s stock has been supported by:
- Strategic stake acquisition: Japanese banking giant Sumitomo Mitsui Banking Corporation (SMBC) recently completed the purchase of a 24.22% stake in Yes Bank from State Bank of India (SBI) and other institutional investors.
- Rating upgrades: Multiple domestic rating agencies — CRISIL, ICRA, India Ratings, and CARE — have upgraded the bank’s rating to AA-, its highest level since March 2020.
- Business performance: The bank’s September quarter business update reflected continued improvement in loan growth, asset quality, and profitability metrics.
Strategic Importance of SMBC Investment
With SMBC’s investment, Yes Bank has gained a strong international partner. The Japanese financial major has become the bank’s largest shareholder, while SBI continues to hold a stake of over 10%.
This marks one of the largest cross-border investments in India’s private banking sector. Yes Bank plans to leverage SMBC’s global network and expertise in trade finance and cross-border transactions to strengthen its corporate banking, treasury, and international operations.
Background and Future Outlook
SBI and a consortium of seven Indian banks had earlier invested in Yes Bank under the reconstruction scheme of March 2020, which helped the lender stabilize after a period of financial distress.
The recent rating upgrades, foreign investment, and improving fundamentals have reignited investor interest in the counter, signaling renewed optimism for Yes Bank’s long-term prospects.
Analysts believe the stock’s near-term performance will depend on the bank’s ability to sustain earnings growth, enhance credit quality, and expand its retail and corporate lending portfolio while maintaining strong capital adequacy.
