YES Bank shares extend fall; what should investors do now?

Shares of YES Bank Ltd continued to drop for the second straight session in Tuesday's trade. The stock slipped 0.50 per cent to touch a day low of Rs 20.06. Around 45.60 lakh shares were last seen changing hands on BSE, lower than the two-week average volume of 79.39 lakh shares. Turnover on the counter came at Rs 9.19 crore, commanding a market capitalisation (m-cap) of Rs 63,016.81 crore.

In May, Japan's Sumitomo Mitsui Banking Corp (SMBC) signed a definitive agreement to acquire a 20 per cent stake in YES Bank for Rs 13,483 crore. A few reports also suggested that SMBC's parent, Sumitomo Mitsui Financial Group, is evaluating an additional investment of $1.1 billion in the private sector lender.

On the earnings front, YES Bank reported a 59 per cent year-on-year (YoY) jump in net profit at Rs 801 crore for Q1 FY26, compared to Rs 502 crore in the same quarter last year. Net interest income (NII) rose 5.7 per cent to Rs 2,371 crore from Rs 2,244 crore a year ago.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that YES Bank may be suitable only for investors with a high-risk appetite. "Given the recent stake sale to a Japanese banking major and the strong profit growth in the June 2025 quarter, one can consider holding the stock," Bathini said.

From a technical standpoint, one analyst advised against taking fresh positions at current levels, while another suggested the stock may trade in a narrow range of Rs 19.8–23 in the near term.

Kunal Kamble, Senior Technical Research Analyst at Bonanza, said, "YES Bank has been trading in a narrow range of Rs 19.30–20.70 for the past 40 sessions, indicating a lack of clear direction. The drying volumes during this period suggest reduced participation from market players. The stock remains in a consolidation phase and it's advisable to avoid fresh positions until a decisive breakout occurs. On the level-specific front, immediate resistance lies in the Rs 20.70–21.70 range while support is placed at Rs 19.50–19.30."

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, observed that support could be seen at Rs 19.8 and resistance at Rs 20.2. A sustained move above Rs 20.2 could push the stock towards Rs 23, with the near-term trading range seen between Rs 19.8 and Rs 23.