Speculative, incorrect: Yes Bank denies stake sale reports in clarification

Yes Bank on Tuesday clarified that its discussions with various stakeholders, aimed at enhancing shareholder value, are routine and currently at a preliminary stage. The clarification follows reports that Japan-based Sumitomo Mitsui Banking Corporation (SMBC) has received Reserve Bank of India (RBI) approval to acquire a 51 per cent stake in the bank. The reports sent Yes Bank shares surging over 8 per cent in early trade on Tuesday. However, the stock pared most of its gains by market close, ending just 1.18 per cent higher at Rs 17.94.

 

The lender disclosed on the exchanges that reports pertaining to discussion with SMBC on stake sale are speculative and factually “incorrect”. 

 

"The bank is on a growth trajectory and routinely explores opportunities with various stakeholders, which are aimed at enhancing shareholder value. However, such discussions are preliminary and do not warrant a disclosure…”, the bank said in an exchange filing. 

 

According to reports, SMBC is in talks with the private lender to acquire a little over 20 per cent stake in the bank, which will trigger an open offer to acquire a majority stake in the bank.

 

Reserve Bank of India (RBI) approval is mandatory for acquiring over 10 per cent stake in any bank. However, sources indicated that RBI has not received any proposal in this regard so far.

 

Currently, State Bank of India (SBI) holds over 24 per cent stake in Yes Bank. Additionally, several other private sector lenders, including HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank also own a marginal stake in the bank.

 

During the reconstruction of the bank in 2020, SBI along with a clutch of private sector lenders and Life Insurance Corporation (LIC) had put in Rs 10,000 crore into the bank.

 

Emails sent to RBI, LIC, SBI, HDFC Bank, and ICICI Bank did not elicit a response. Yes Bank did not reply to an email seeking comments.