YES Bank Shares Jump 9%: How Strong is the Upside Rally?

YES Bank made headlines today as its shares surged nearly 9%, touching a day high of Rs 23.40. This impressive rally comes just a day before the bank’s crucial board meeting scheduled for June 3, 2025, where the management is expected to discuss fundraising plans through various options like equity shares, debt securities, or convertible instruments.

What’s Driving the Rally?

Investors seem optimistic ahead of the board meeting. The bank has officially informed the stock exchanges that fundraising is on the agenda, and that could mean fresh capital, stronger financials, and potentially new growth opportunities.

Adding fuel to the rally is State Bank of India (SBI)’s plan to sell a 13% stake in YES Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC). This deal could bring in international expertise and confidence, further boosting investor sentiment.

What Are Experts Saying?

Several market analysts believe that YES Bank has room to grow even further. Here’s a quick look at what the experts say:

• Anshul Jain (Lakshmishree Investment): Says Rs 23.94 is a key resistance. If the stock closes above Rs 24, it might rally up to Rs 27.2, and maybe even Rs 32.8 in the longer run.

• Kunal Kamble (Bonanza): Advises buying on dips near Rs 22 with a stop loss at Rs 21. His short-term target is Rs 25.

• Ravi Singh (Religare Broking): Confirms that the stock looks strong on charts and might touch Rs 25, but warns to keep a stop loss at Rs 20.

• Osho Krishan (Angel One): Notes that the stock has crossed a key level of Rs 22, suggesting it may soon head towards Rs 25–26.

• Jigar S Patel (Anand Rathi): Predicts a trading range between Rs 21 and Rs 25 in the short term. A clear breakout above Rs 23 might lead to further gains.

What About Long-Term Investors?

As per recent data, SBI currently owns 24% in YES Bank, but once the SMBC deal goes through, SBI’s stake will reduce to 10.81%. Other big Indian players like Kotak Mahindra Bank, ICICI Bank, Axis Bank, and LIC also have stakes in the bank, along with global PE giants like Advent International and Carlyle.

This strong institutional backing shows long-term confidence in the bank's turnaround and growth story.

Final Thoughts: Is the Upside Real?

YES Bank’s sharp 9% rally is definitely a positive sign. With major developments like fresh fundraising and a global banking partnership on the horizon, there’s a strong possibility that the stock might hit Rs 25 or higher in the near term.

However, investors should stay cautious and keep an eye on key resistance and support levels. If the board meeting results in solid fundraising plans, the stock might break out further. But as always in the stock market, it’s wise to set a stop loss and follow market trends closely.

Reference from:-https://www.businesstoday.in/markets/stocks/story/yes-bank-shares-zoomed-9-today-how-strong-is-this-upside-478656-2025-06-02