Yes Bank Shares Surge 29% In Biggest Single-Day Gain In 4 Months

Yes Bank shares soared more than 29 per cent on Thursday - marking their biggest intraday jump since October 31 - after a report suggested the government had approved a plan for State Bank of India (SBI) to lead a consortium that will buy a stake in the private sector lender. The Yes Bank stock -  which has lost one third of its value so far this year - jumped as high as Rs 37.90 apiece on the BSE during the session, from its previous close of Rs 29.35, marking a gain of 29.35 per cent. 

News agency Bloomberg reported, citing people with knowledge of the matter, that the government had approved a rescue plan for Yes Bank involving capital injection by a consortium led by SBI. An announcement is expected soon and SBI has been authorised to pick other members of the consortium, the people said, asking not to be identified as the information isn't public.

Shares in State Bank of India (SBI) - the country's largest lender by assets - slumped as much as 5.33 per cent to Rs 270.10 after the report but soon recovered to touch Rs 298.25 - up 4.54 per cent from their previous close of Rs 285.30.

Yes Bank said that "as on date, the Bank has not received any such communication from RBI or any other the Government or Regulatory authorities or from the SBI and we are unaware of any such decision. Therefore, we are not in a position to comment on such news item", in response to stock exchange BSE, which had sought clarification from the private sector bank on the matter. 

Yes Bank ended the session with a gain of 25.77 per cent at Rs 36.85 and SBI settled at Rs 288.30, up 1.05 per cent compared to its previous close, both outperforming the benchmark S&P BSE Sensex which gave up most of its intraday gains to shut shop up 0.16 per cent.

The Nifty Bank index - comprising shares in 12 of the major lenders in the country including SBI and Yes Bank - closed 0.56 per cent higher, after rising as much as 1.68 per cent during the session.

As of Thursday's close, Yes Bank shares are down 21.51 per cent so far this year, after losing 74.17 per cent last year. The private sector bank has struggled to raise capital it desperately needs to stay above regulatory requirements as it battles high levels of bad loans due to its exposure to troubled sectors.

Yes Bank has been trying to raise $2 billion in fresh capital for two quarters. Yes Bank said in February that it will delay its December-quarter results by at least a month.