Shares of Yes Bank climbed 4.4% over the past week, hitting Rs 22.20 on Monday, buoyed by strong quarterly loan growth and continued investor interest following the completion of a strategic stake sale to Japan’s Sumitomo Mitsui Banking Corporation. The stock has added 7.5% over the past month and is up nearly 12% so far in 2025, reflecting sustained bullish momentum.
Yes Bank reported a 6.5% year-on-year increase in loans and advances for the quarter ended September 30, 2025, at Rs 2,50,468 crore, up from Rs 2,35,117 crore in the same period last year. Deposits grew 7.1% YoY to Rs 2,96,831 crore. On a sequential basis, advances rose 3.9% and deposits increased 7.6%, indicating robust quarter-on-quarter growth.
The numbers were announced as part of Q2 updates and are provisional, with the bank set to release the final Q2 earnings later this month.
The bank’s CASA (current and savings account) balances jumped 13.2% YoY to Rs 1,00,263 crore, while the CASA ratio improved to 33.8% from 32% a year ago. The Credit to Deposit Ratio stood at 84.4%, slightly lower than 87.4% in the previous quarter. The Liquidity Coverage Ratio, a measure of short-term liquidity resilience, eased to 125.1% from 135.8% in Q1FY26.
Stake sale boosts market sentiment
Investor sentiment has also been bolstered by State Bank of India’s divestment of its 13.18% stake in Yes Bank to SMBC for Rs 8,889 crore, involving the sale of 413.44 crore equity shares at Rs 21.50 per share. Market participants viewed the transaction as a validation of the bank’s recovery story and strategic direction.
Earnings and profit trends
In Q1 FY26, Yes Bank reported a 59% YoY rise in standalone net profit to Rs 801 crore, with net interest income at Rs 2,371 crore, up 5.7% YoY and 4.2% QoQ. Net interest margin improved to 2.5%, aided by lower deposit costs and reduced PSL shortfall-related expenses. Analysts say these trends provide confidence for the upcoming Q2 earnings, expected later this month.
Technical outlook
From a technical perspective, Yes Bank is trading above all eight key simple moving averages, signaling a strong bullish trend across short- and long-term charts.
The Relative Strength Index (RSI) is at 70.3, indicating the stock is approaching overbought levels, while the Moving Average Convergence Divergence (MACD) at 0.5 remains positive above both the center and signal lines.
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