Yes Bank shares climbed two percent in the morning trade session on July 9 after the lender clarified that news reports suggesting a 51 percent stake sale is "factually incorrect and purely speculative."
News reports said that the Reserve Bank of India (RBI) approved the sale of up to 51 percent stake in Yes Bank, paving the way for new ownership of the private lender that faced a severe crisis just four years ago.
The Mint reported that a potential sale could value India's sixth-largest private bank by assets at approximately $10 billion, making it the largest acquisition in the country's banking sector.
However, in a filing with the bourses, the private lender stated, "The RBI has not given any in principle approval as stated in the article. This clarification is issued by the company voluntarily to dispel the baseless media article."
At 9.45 am, shares of Yes Bank were quoting Rs 26.07 on the NSE, higher by around 1.5 percent compared to the previous close.
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According to the news report, a source revealed that certain bidders will only be interested if allowed to acquire a controlling stake of 51 percent or more. As a result, the RBI had agreed to a 51 percent sale of control to an appropriate incoming promoter.
While the RBI officials have verbally agreed to the sale proposal, a formal written approval is yet to come. The RBI is evaluating the suitability of the prospective bidders, said another source to the Mint.
State Bank of India and other lenders, who collectively control 33.74 percent of Yes Bank, which has assets of over Rs 4 lakh crore would have an exit route as a result of the supposed RBI clearance.
SBI owns 23.99 percent in Yes Bank, 2.75 percent of HDFC Bank, 2.39 percent of ICICI Bank, 1.21 percent of Kotak Mahindra Bank, and 1.01 percent of Axis Bank. LIC owns 3.98 percent in Yes Bank, CA Basque Investments 8.74 percent, and Verventa Holdings 9.21 percent. The total amount of shares held by banks in Yes Bank has decreased from 36.74 percent in March and 35.18 percent in April.
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