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Indian Lender Surges Most Since 2013 on Asset Quality Surprise

  • Yes Bank jumps 11% as credit-cost guidance cut to 50 bps
  • Lender with lowest bad-loan ratio is India's best bank stock
A customer exits a Yes Bank branch in Gujarat.

A customer exits a Yes Bank branch in Gujarat.

Photographer: Dhiraj Singh/Bloomberg

Yes Bank Ltd., the Indian lender with the lowest bad-loan ratio, gained the most since September 2013 months after saying it expects an improvement in its asset quality this quarter, making it the nation’s best-performing banking stock this month.

The stock jumped 11 percent to 746.80 rupees in Mumbai on Friday, outperforming bigger rivals including ICICI Bank Ltd. and State Bank of India this month. With a 2.9 percent advance this year, it is the only gainer on the 10-member S&P BSE India Bankex Index, beating the broader benchmark S&P BSE Sensex, which fell 5 percent.