DBS Bank denies reports of possible Yes Bank acquisition

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Singapore-based DBS Bank, on November 2, denied reports claiming that it may acquire 51 percent stake in Yes Bank.

"The rumours of DBS acquiring a stake in Yes Bank are unfounded and baseless," a DBS Spokesperson told news agency IANS.

According to a report by CNBC-TV18, Yes Bank also said that reports of possible acquisition by DBS, were false.

As per current rules banks (including foreign banks having branch presence in India) can acquire up to 10 percent stake (share) in other banks. However, according to CNBC-TV18, in case of exceptional circumstances, the Reserve Bank of India (RBI) may permit them a higher level of shareholding.

Moneycontrol could not independently verify the reports.

On November 1, Yes Bank had said that investors were in discussion it to pump in capital of around $3 billion.

The bank had disclosed that one of the investors in discussion for $1.2 billion capital is a family office in the US.

The capital adequacy ratio of the bank has dipped in the last few quarters due to the accelerated recognition of non-performing assets (NPAs).

The bank is also in discussions to raise $1.6 billion from a clutch of six global private equity funds and two domestic mutual funds, according to chief executive Ravneet Gill. Gill had replaced the promoter-chief executive Rana Kapoor earlier this year.