The government has approved a plan for country’s largest lender, State Bank of India , to lead a consortium that will buy a stake in private lender Yes Bank , news agency Bloomberg reported on Thursday.State Bank of India has been authorized to pick other members of the consortium and the announcement is expected soon, the report said.Following the development, shares of YES Bank jumped 9.56 per cent to hit a high of Rs 32.10 on BSE. Shares of state-run SBI fell 3.01 per cent to Rs 276.70."As per media reports, SBI has been told to invest as a lead in a consortium in Yes Bank. Though we may see a big spike in price of Yes Bank and negative reaction in price of SBI, we recommend caution to retail investors. The critical thing to watch would be percentage dilution of equity taking into consideration the conversion of existing bonds issued by Yes Bank into equity," said Abhimanyu Sofat, Head Of Research, IIFL Securities.Earlier in January, the chairman of the bank had expressed his strong belief that “some solutions will emerge” to bail out the private lender.YES Bank has so far failed to bring a strategic investor. Reports recently suggested that the private bank had approached mutual funds for raising fresh equity capital worth $300-$500 million.The private lender had earlier said it has delayed its third-quarter earnings as the bank is reviewing non-binding expressions of interest from four investors.YES Bank had plans to raise up to $2 billion to shore up its capital base.It had picked Cantor Fitzgerald, led by former Deutsche Bank global co-CEO Anshu Jain, and local investment banks IDFC Securities and Ambit Capital to raise funds that would help the lender expand its loan book.Recently, the private lender received non-binding expressions of interest from investors including JC Flowers, Tilden Park Capital, OHA UK and Silver Point Capital.Also, a media report last month suggested Hinduja Group was partnering with private equity firm Cerberus Capital Management LP in seeking to pick up a stake in embattled Yes Bank.However, nothing materialised till date.(With inputs from ET Bureau)