Yes Bank shares climbed 2% in early trade on July 9 after the lender clarified that news reports suggesting a 51% stake sale are “factually incorrect and purely speculative.”
In a filing with the bourses, Yes Bank 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.”
What did media reports suggest?
Earlier reports had claimed that the Reserve Bank of India (RBI) had approved the sale of up to 51% of Yes Bank, potentially paving the way for new ownership of the private lender, which faced a severe crisis four years ago. According to The Mint, 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.
The news report indicated that certain bidders would only be interested if they were allowed to acquire a controlling stake of 51% or more. As a result, the RBI had reportedly agreed to a 51% sale of control to an appropriate incoming promoter.
State Bank of India (SBI) and other lenders, who collectively control 33.74% of Yes Bank, which has assets exceeding Rs 4 lakh crore, would have an exit route as a result of the supposed RBI clearance.
SBI owns 23.99% of Yes Bank, 2.75% of HDFC Bank, 2.39% of ICICI Bank, 1.21% of Kotak Mahindra Bank, and 1.01% of Axis Bank. LIC owns 3.98% of Yes Bank, CA Basque Investments 8.74%, and Verventa Holdings 9.21%. The total amount of shares held by banks in Yes Bank has decreased from 36.74% in March to 35.18% in April.
Yes Bank Share Performance in Last One Year
When discussing the stock performance, the shares of Yes Bank have consistently delivered positive returns over various timeframes. In the last month, the stock sustained its positive momentum, giving returns of 9.05%. Over the past six months, it exhibited notable growth with returns of 7.56%, showcasing a robust performance.
Year-to-date figures further emphasize the stock’s bullish trend, recording a steady growth of 14.92%. Looking at the broader horizon, the shares have maintained their positive trajectory, showing returns of 52.61% in the last year.
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