YES Bank shares rise over 3%; two key triggers drive today's upmove

YES Bank shares rose 3.30 per cent in Tuesday's late session to hit a high of Rs 20.65, snapping a two-day losing run. The stock's rebound was driven by two key developments. Firstly, a report from MoneyControl, citing sources, claimed that Japan's Sumitomo Mitsui Financial Group Inc is considering an additional investment of $1.1 billion in YES Bank. This would follow the Japanese banking giant's previous investment made just two months ago.

Secondly, rating agency ICRA upgraded or reaffirmed its ratings on YES Bank's infrastructure and Basel III bonds worth Rs 24,460.80 crore. The ratings for the Infrastructure Bonds and Basel III Tier II Bonds were raised to ICRA AA-/Stable.

"The rating upgrade factors in the steady increase in Yes Bank Limited’s (YBL) scale of operations, the improving mix of the loan book with the growing share of granular loans, and the continued decline in the stressed assets pool, which provides some stability to the earnings and capital position. ICRA also takes note of the steady recoveries from the security receipts (SRs), which helped the bank report an improvement in its overall profitability," the agency stated.

ICRA further highlights the planned stake acquisition by Sumitomo Mitsui Banking Corporation (SMBC), which will be the single largest shareholder once the required approvals are received.

Japan's Sumitomo Mitsui Banking Corp (SMBC) signed a definitive agreement in May this year to acquire a 20 per cent stake in YES Bank for Rs 13,483 crore.

In its operational update for the June 2025 quarter (Q1 FY26), the lender reported a 5.1 per cent year-on-year (YoY) increase in loans and advances, rising to Rs 2,41,355 crore from Rs 2,29,565 crore. However, on a quarter-on-quarter (QoQ) basis, loans and advances declined 2 per cent from Rs 2,46,188 crore.

"YES Bank is forming a double bottom pattern, a classic bullish reversal structure. A decisive breakout above Rs 20.65 would confirm the pattern and potentially pave the way for an upside towards Rs 21.90–23. Support is seen at Rs 20. The stock's close above all key exponential moving averages (EMAs) further strengthens the positive technical outlook," Kunal Kamble, Senior Technical Research Analyst at Bonanza noted.