YES Bank shares jumped 10% today; here's what is pushing the stock higher

Shares of YES Bank Ltd saw a sharp uptick on Friday, climbing 11.74 per cent to hit an intraday high of Rs 20.36. The stock eventually settled 9.77 per cent higher at Rs 20. At this price, it has gained 13.57 per cent in the last five trading days.

A few market experts attributed this upward move to stake purchase by Japan-based Sumitomo Mitsui Banking Corporation (SMBC). State Bank of India (SBI) has announced that it would sell around 13 per cent of its holding in YES Bank to SMBC. The deal is expected to happen within 12 months from the date of execution or such other date as mutually agreed.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, the recent report of a foreign bank acquiring a substantial stake in YES Bank has been creating some positive momentum on the counter. "The last quarter's results have been good and also the BFSI sector's outlook is creating some buying interest in the private lender. Investors with a high-risk appetite and long-term view can hold on to YES Bank," he added.

Amit Goel, co-founder and chief global strategist at Pace 360, said the asset management company (AMC) has 'aggressively' purchased shares of YES Bank Ltd. 

"We bought YES Bank (stock) in a very big way. My sense is that there are very good things to happen in the case of YES Bank over the next few months. I believe would definitely give us about 15-20 per cent returns over the next few months. We bought YES Bank very aggressively," he stated.

"We bought YES Bank shares as the dynamics are very different there. This would effectively become a Sumitomo (Japan) bank in India," Goel also said.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "The bank has recently staged a notable technical breakout, moving decisively above its trendline resistance — a key signal pointing to a potential shift in momentum. The stock also rebounded strongly from a crucial support level, reinforcing confidence in its stability and near-term upside potential. It is suggesting a trend reversal possibility and if backed by healthy volumes and positive market sentiment, it could open the door for further gains in the sessions ahead."

Meanwhile, State Bank of India (SBI) currently owned a 24 per cent stake in the bank, while other domestic entities such as Kotak Mahindra Bank, Axis Bank, ICICI Bank and Life Insurance Corporation of India (LIC) held a combined stake of 11.34 per cent in YES Bank. And, private equity (PE) funds Advent International and Carlyle reportedly held 9.2 per cent and 6.84 per cent, respectively. Once this deal happens, SBI's stake in the private lender will be reduced to 10.81 per cent.