Yes Bank dismisses reports of any potential stake sale by SBI

In Q3 FY24, YES Bank reported a net profit of Rs231 crore, marking a 4.4-fold increase YoY and a 2.8% increase QoQ.

Yes Bank clarified on February 8 that it was not engaged in any negotiations related to SBI's stake sale via a block deal, as reported in the media.

"The bank would like to clarify that the news appears to be speculative. The bank is not involved in any negotiations concerning the subject of the news. Hence, the bank is unable to comment on the said article and its impact," Yes Bank said in an exchange filing.

According to media reports, India's largest lender - SBI was likely to sell shares worth Rs 5,000-7,000 crore through a block deal, with no taxes applicable on sale.

In July 2022, Yes Bank's board proposed to exit the reconstruction scheme. Under the scheme in March 2020, eight banks led by SBI acquired stakes. As of December 2023, SBI holds 26.13%, HDFC Ltd holds 3%, and ICICI Bank holds 2.61% equity in Yes Bank.

In March 2020, the RBI took over YES Bank, appointing former SBI CFO Prashant Kumar as the administrator due to the bank's financial troubles, including mounting bad loans and challenges in raising capital. Governance issues further contributed to the decline in the bank's financial position in 2020.

In Q3 FY24, YES Bank reported a net profit of Rs231 crore, marking a 4.4-fold increase YoY and a 2.8% increase QoQ. Net interest income (NII) rose 2.3% YoY and 4.8% QoQ to Rs2,017 crore. The net interest margin (NIM) for the quarter was 2.4%, up 10 bps QoQ but down 10 bps YoY.

In its earnings call, the bank said it is concentrating on yield accretive segments, with a growing share of retail loans expected to support margins. Net advances increased by 11.8% YoY and 4.0% QoQ to Rs2.2 lakh crore, with the share of retail and SME loans rising to 63%. Disbursements for the quarter totaled Rs28,498 crore, including Rs9,769 crore in retail assets, Rs1,126 crore in rural loans, Rs8,265 crore in SME loans, and Rs1,108 crore in mid-corporate loans.