Why Did YES Bank Shares Jump Over 3%? Will They Rise Further?

YES Bank stock rallies after reports of a fresh $1.1 billion investment from Japan’s SMBC and a ratings upgrade by ICRA for bonds worth ₹24,460 crore.

July-16, 2025: YES Bank shares surged over 3.3% on Tuesday, hitting an intraday high of ₹20.65 and snapping a two-day losing streak. The rally was fueled by two major catalysts:

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  1. A fresh investment buzz from Japan’s Sumitomo Mitsui Financial Group (SMFG).
  2. A ratings upgrade by ICRA for the bank’s infrastructure and Basel III Tier II bonds.

According to a Moneycontrol report citing sources, SMFG is considering an additional $1.1 billion investment in YES Bank. This follows SMBC’s already-announced acquisition of a 20% stake for ₹13,483 crore, announced in May 2025. If the new funding materializes, SMFG could further solidify its position as the largest single shareholder in the Indian private lender, pending regulatory approval.

Meanwhile, ICRA has upgraded or reaffirmed ratings on YES Bank’s infrastructure and Basel III bonds worth ₹24,460.80 crore. Notably, the Infrastructure Bonds and Tier II Bonds now hold an ‘ICRA AA-/Stable’ rating.

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In a statement, ICRA noted:

“The rating upgrade factors in the steady increase in Yes Bank’s scale of operations, a growing share of granular loans, and a continuous reduction in stressed assets. These developments are stabilizing the bank’s earnings and capital profile.”

The agency also highlighted the bank’s steady recoveries from Security Receipts (SRs) and improving profitability metrics.

Q1 FY26 Operational Update

In its June 2025 quarter (Q1 FY26) update, YES Bank reported a 5.1% YoY increase in loans and advances, rising to ₹2,41,355 crore from ₹2,29,565 crore. However, on a sequential basis, there was a 2% QoQ decline, with the Q4 FY25 figure standing at ₹2,46,188 crore.

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Technical Outlook

According to Bonanza’s Senior Technical Analyst Kunal Kamble, the stock is forming a double-bottom pattern, a classic bullish reversal signal.

“A breakout above ₹20.65 could lead to a potential rally toward ₹21.90–₹23.00,” he stated.
The stock also closed above all key Exponential Moving Averages (EMAs), strengthening the near-term technical outlook.


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YES Bank share price, YES Bank Q1 FY26 results, Sumitomo Mitsui Banking Corp investment, ICRA rating upgrade, YES Bank news today, Indian stock market, banking stocks, SMBC stake in YES Bank


Hashtags:

#YESBank #StockMarket #ICRAUpgrade #SMBCInvestment #BankingStocks #YESBankShares #IndianMarkets #Q1FY26 #SumitomoMitsui #TechnicalAnalysis

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