Yes Bank Denies Reports of RBI Nod for 51% Stake Sale

Yes Bank has dismissed reports claiming that the Reserve Bank of India (RBI) approved a 51% stake sale in the Firm.

In a regulatory filing, it clarified, “RBI has not given any in-principle approval as stated in the article, and the company issues this clarification voluntarily to dispel the baseless media article.” Despite the denial, Yes Bank shares opened 1% higher today (July 9).

Details of the Speculative Report of Yes Bank:

The report alleged that the RBI had approved an incoming promoter’s purchase of up to a 51% stake in Yes Bank, exceeding the usual 26% promoter-holding limit under banking rules.

It suggested that this potential sale could value Yes Bank, the country’s sixth-largest private Bank by assets, at approximately $10 billion, potentially making it the largest acquisition in India’s banking sector.

Current Status of Stakeholders and Potential Sale of RBI:

The report also claimed that the RBI had recently given preliminary approval to Yes Bank and its key shareholders while still assessing the bidders’ fit-and-proper status.

According to the report, Yes Bank has engaged Citigroup to shortlist suitable promoters for the potential stake sale.

Yes Bank’s major stakeholders include the State Bank of India (SBI), HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, and Life Insurance Corporation (LIC), which collectively own about one-third of the Bank.

Market Reaction and Future Outlook by Yes Bank:

The market’s positive reaction to the speculative report indicates investor interest in the Bank’s potential future developments.

However, with Yes Bank’s clarification, the situation remains fluid, and further official updates from the RBI and the Bank will be crucial in determining the actual course of events.

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