Yes Bank Quashes Stake Sale Rumours, Calls It 'Factually Incorrect And Purely Speculative'

In the morning trade on Tuesday (July 9), Yes Bank's shares increased by 2 per cent as the lender clarified that news reports indicating a sale of a 51 per cent stake are "factually incorrect and purely speculative."

The report said that the bank has designated Citigroup to shortlist qualified promoters and that the RBI is still determining whether the bidders are fit and proper. One-third of YES Bank is owned by the State Bank of India (SBI) and other lenders, including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, and LIC.

False News report

According to the news report, some bidders will only be considering the opportunity to purchase a 51 percent or greater controlling stake. Consequently, the RBI had consented to a 51 percent transfer of control to a suitable new promoter.

If the said report is accurate, it has prepared the way for the private lender, which made a comeback four years ago, to have a new owner. Two people with direct knowledge of the development told Mint that the sixth-largest private bank in India by assets may be valued at roughly USD 10 billion through a potential stake sale.

Loans and advances (Q1 FY24)

YES Bank revealed last week that loans and advances for the June quarter totaled Rs 2,29,920 crore, up 14.8 per cent year over year (YoY) from Rs 2,00,204 crore in the corresponding quarter of the previous year.

Deposits for the quarter increased by 20.8 per cent YoY to Rs 2,64,910 crore from Rs 2,19,369 crore in the corresponding quarter of the previous year, according to a filing made by YES Bank to the BSE.

According to the bank, its YoY deposit growth, excluding CDs (cash deposits), was 20.9 per cent. On a quarterly basis, advances increased by 0.9 per cent while deposits increased by 0.5 per cent.

Stock performance

At 12.35 pm, Yes Bank shares were trading around Rs 26.09 per share, a 1.06 per cent upside on Indian bourses.