E-Paper
Yes Bank shares clarification on 51% stake sale report: ‘Factually incorrect’
Yes Bank said that report on the Reserve Bank of India (RBI) giving nod to the 51% stake sale is factually incorrect and purely speculative.
Yes Bank said that report on the Reserve Bank of India (RBI) giving nod to the 51% stake sale is c and purely speculative. Following this, shares of Yes Bank opened a per cent higher today (July 9). The bank said in a regulatory filing, “RBI has not given any in principle approval as stated in the article and this clarification is issued by the company voluntarily to dispel the baseless media article.”
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The report had claimed that the RBI has given its in-principle approval for up to 51% stake purchase by an appropriate incoming promoter for Yes Bank. This is higher than the 26% promoter-holding limit in the usual course of business under banking rules, it added.
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The report also noted that the potential sale could value the country's sixth-largest private bank by assets at approximately $10 billion which could make it the largest acquisition in India's banking sector.
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The report also claimed that the RBI recently gave a preliminary nod to Yes Bank and its key shareholders and is still accessing the fit-and-proper status of the bidders. Yes Bank has appointed Citigroup to shortlist suitable promoters, it added.
State Bank of India (SBI), HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank and LIC own about one-third stake in Yes Bank.
