Yes Bank Shares Edge Higher as SMBC Boosts Stake to 24.2%; Market Eyes Long-Term Recovery

Intraday Market Performance

MUMBAI — Shares of Yes Bank Limited (YESBANK) witnessed a modest surge during Wednesday’s trading session, December 24, 2025. As of 12:50 PM IST, the stock was trading at ₹21.80, representing a 0.28% increase from its previous close. Earlier in the session, the stock touched an intraday high of ₹21.95, outperforming the broader private-sector banking index which saw a more muted gain of 0.17%.

Trading volume remained significant, with over 30.87 million shares changing hands across the NSE and BSE. Market capitalization for the mid-cap lender currently stands at approximately ₹68,403 crore.

SMBC Increases Strategic Stake

The primary catalyst for recent investor interest is the significant stake hike by Sumitomo Mitsui Banking Corporation (SMBC). The Japanese financial giant has reportedly increased its holding in Yes Bank to 24.2%. While the move underscores long-term confidence in the bank’s restructuring efforts, the immediate market reaction has been described as "muted."

Market analysts note that the stock is currently hovering near the deal valuation of ₹21.5 per share. The disconnect between the substantial foreign investment and the stagnant share price is attributed to investor hesitation regarding the bank's profitability trajectory.

Financial Health and Asset Quality

Yes Bank's Q2 FY26 earnings recently showcased an 18.3% year-on-year (YoY) rise in net profit, reaching ₹654 crore. Key highlights from the financial disclosures include:

• Asset Quality: Gross Non-Performing Assets (GNPA) remained steady at 1.6%, with Net NPA at a healthy 0.3%.

• Deposit Mix: An improving mix of low-cost CASA (Current Account Savings Account) deposits.

• Provisioning: The bank maintains a robust provision coverage ratio of 81%.

Yes Bank (Organization) Analyst Outlook and Technicals

Despite the stabilizing fundamentals, the road to a 1% Return on Assets (RoA) remains a point of contention for brokerage firms. The average broker rating continues to lean toward a "Hold" or "Strong Sell" as the market waits for more aggressive RoA growth.

Technically, Yes Bank is trading above its 100-day and 200-day moving averages, suggesting underlying long-term support. However, it faces immediate resistance at the ₹22.00 psychological level. Traders are currently viewing the stock as a momentum play within the mid-tier banking segment rather than a sustained accumulation target.