Shares of Yes Bank rose as much as 8.4 percent to Rs 68.40 on Wednesday morning as the private lender denied reports of securing a minority stake.

In a reply to BSE, the bank said, "We refer to the captioned news item carried out by Reuters & few others, which are speculative in nature and would like to clarify the facts as under: The Bank in the usual and ordinary course of its business continues to explore various means of raising capital/funds through issuance of securities to diverse set of investors, in order to meet its business/ regulatory requirements, subject to compliance with prescribed procedures and receipt of statutory I regulatory approvals."

On Tuesday, there were various media reports that said that founder Rana Kapoor was looking to sell his 9.4 percent stake in the bank to cut his personal debt and help Yes Bank facilitate a fresh round of fundraising to improve its capital position.

A PTI report citing unidentified sources said that Rana Kapoor and his family were in preliminary talks to sell their entire stake to Paytm. The Reuters report quoting CEO Ravneet Gill said that Yes Bank was close to securing a deal to sell a minority stake to a global technology company.

On Tuesday, the stock markets were closed for Muharram.