Mumbai: India’s Yes Bank Ltd said it got a $1.2 billion binding offer from a global investor for a stake sale, resulting in a rally that helped make it the world’s best performing bank share this month.

The Mumbai-based lender jumped 24 per cent at the 3:30pm close in Mumbai on Thursday following the announcement. The company didn’t name the investor in its exchange filing, though CNBC-TV18 said it was Hong Kong-based SPGP Holdings. The report didn’t cite anyone.

Yes Bank has been foundering since last year, culminating in the departure of co-founder Rana Kapoor, who was forced out by India’s central bank amid a dispute over the lender’s reporting of bad debts. Chief Executive Officer Ravneet Gill was brought in from Deutsche Bank AG in March to stabilise operations, and has spent the past few months trying to raise capital. A sale would reassure investors, who have seen the bank lose about 60 per cent of its market value in the past year.

“If they are able to raise this capital then it will sustain Yes Bank’s growth for next one year,” said Kranthi Bathini, director at Wealthmills Securities Pvt. “But we need to know the name of the investor, timing of the capital infusion and the Reserve Bank of India’s comfort with this proposal.” Gill said in an interview earlier this month that the share sale will happen “much sooner than the market expects.” The company has been in talks with private equity investors, technology companies and family offices.

Yes Bank rose to 70.30 rupees in Mumbai on Thursday. Its 3.75 per cent US dollar notes due February 2023 gained 3.9 cents on the dollar to 89.2 cents, according to prices compiled by Bloomberg.

Yes Bank shares have been volatile this year as investors react to news of the lender raising capital, and its attempt to resolve bad loans. They have risen 70 per cent this month but are still down 62 per cent over the past year.

A transaction is subject to regulatory and other approvals, according to the statement. The company is scheduled to release its quarterly earnings on Friday.