Shares of Yes Bank surged nearly 11 percent on Tuesday, extending gains from Monday after The Economic Times reported that the bank has received $850 million term sheet offer over the weekend from a consortium of four PE firms.

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The consortium is being led by one of the US-based equity investors, who may pick a 10 percent stake in the bank, while the other three investors may take another 10 percent, sources told the paper.

The bank rose as much as 10.8 percent to Rs 103.35 per share on the BSE. At 1:52 PM, the stock was trading 10 percent higher at Rs 102.55 as compared to 0.3 percent (107 points) rise in the BSE Sensex at 39,004.

However, the bank denied the claims in the report saying it was unaware of any such development.

"Bank in the ordinary course of its business continues to explore various means of raising capital/ funds through the issuance of securities to a diverse set of investors, in order to meet its business/ regulatory requirements subject to compliance with prescribed procedures and receipt of statutory/regulatory approvals. The bank is not aware of the source, which resulted in the news item and as a matter of policy, the bank would not like to comment on such speculation," it said in a regulatory filing.

According to the ET report, the bank was likely to make the announcement after June-quarter earnings due on July 17.

Brokerage firm Prabhudas Lilladher expects an 84 percent YoY fall in net profit at Rs 201.10 crore in Q1FY19. It also added that the asset quality of the lender may deteriorate further with the percentage of gross non-performing assets (NPA) rising to 3.70 percent in Q1FY19 versus 3.22 percent a year ago.

Shares of the bank have underperformed benchmark indices this year, down 65 percent since April after the bank reported a loss of Rs 1,506 crore in its March-quarter results.

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