Why Is Yes Bank's Share Price Surging? Explained

Yes Bank’s share price surged sharply on Monday, June 2, gaining over 8% during intraday trading and extending its upward streak for the third consecutive session. Shares climbed as much as 8.61% to ₹23.32 on the BSE.

The rally comes ahead of a key board meeting scheduled for Tuesday, June 3, 2025, where the bank’s board will consider proposals to raise capital by issuing equity shares or debt securities. This could involve private placement, preferential allotment, or other methods, pending necessary approvals.

In a regulatory filing on May 28, Yes Bank stated, “The Board of Directors meeting on June 3 will discuss raising funds through issuance of equity shares, debt securities, or other eligible securities by permissible modes including private placement or preferential issue.”

The bank also announced that its trading window for insiders will remain closed from May 29 until two days after the board meeting outcome is disclosed to stock exchanges.

Investor confidence was further boosted by the recent announcement that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) plans to acquire a 20% stake in Yes Bank from the SBI-led consortium. Valued at ₹13,483 crore, this deal is the largest cross-border investment in India’s banking sector. Once complete, SMBC will become the largest single shareholder of Yes Bank. This strategic investment comes five years after the bank was rescued by a domestic bank consortium led by SBI.

On the technical front, Kunal Kamble, Senior Technical Research Analyst at Bonanza Portfolio, pointed out that Yes Bank’s share price has broken out of a Pennant Pattern, signaling continuation of the bullish trend.

“Yes Bank is trading well above its key EMAs, confirming a bullish bias. Rising volumes indicate strong buyer interest, while the RSI remains high, showing sustained momentum. The overall technical outlook is positive,” Kamble explained.