Shares of Yes Bank hit a fresh 20-month high of Rs 18 in intraday trade on Thursday, rising 4% amid heavy BSE trading. Shares of the private sector lender have risen 35% in the past three months on the improved outlook. Meanwhile, the S&P BSE Sensex rose 8.4% over the same period.

With today’s gains, Yes Bank is at its highest level since January 2021. The stock was up 3% at Rs 17.75 at 1.46 pm, while the benchmark Sensex was up 0.7%. Average over-the-counter volumes on the NSE and BSE jumped 1.8 times, with 252 million shares changing hands.

On the asset side, the bank has realigned its business model to focus on finer lending, with a growing share of retail and small and medium enterprises (SMEs). Even in the company’s books, the bank has focused on its exposure to the smaller and higher percentage of its working capital loans in the past, with term loans mainly to higher-rated companies. Reported asset quality indicators are also expected to benefit from the proposed transaction with Asset Reconstruction Corporation (ARC), which will see the bank sell stressed exposures worth Rs 48,000 crore, CRISIL said.

Meanwhile, Ind-Ra said in its rating rationale that the bank’s debt profile was reinforced by an escalation factor that bolstered the capital buffer through a proposed equity raise of around Rs 8,900 crore, as reflected in the retail deposit ratio. Particles are gradually outpacing the increase in sectoral lending, the increased share of the non-corporate loan portfolio, and the overall improvement in the post-Covid-19 operating environment.

Yes Bank continues to gain market share in digital payments, which has played a legitimate role in the bank’s attempts to mobilise demand deposits (CA) and other businesses. Furthermore, the rating agency said the bank’s restructuring appears to be complete as senior management has become relatively stable and the RBI has removed its representative from the bank’s board.