Yes Bank share price remained on an upward trajectory and jumped 4.40 percent to close at Rs 42.75 on BSE on January 24.
The stock logged a healthy gain of 6.5 percent a day before, buoyed by State Bank of India (SBI) Chairman Rajnish Kumar’s statement that the private lender was too big to be allowed to fail.
With today's gains, the stock has extended its winning run into the third consecutive day. In the three sessions, the stock has risen 11.47 percent.
Kumar’s comments brought relief for Yes Bank stock, which is 87 percent down from its 52-week high of Rs 285.90 hit on April 3, 2019.
"The SBI chairman's comment has reinforced the confidence that there are enough buyers for Yes Bank. We expect some fundraising will be done soon and as the liquidity starts to get easier, enough people will come forward to buy the franchise of Yes Bank," said IIFL Securities director Sanjiv Bhasin.
However, market experts also point out that Yes Bank has not been able to raise capital despite several efforts and a lot will depend on the bank’s extraordinary general meeting called on February 7.
Besides, the market will be closely watching the lender's December quarter numbers. Asset quality and commentary on capital raising will be the focus, though the bank has not announced the earnings release date.
Most brokerages are expecting unimpressive numbers for the bank.
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