Synopsis: YES Bank shares rose by 1.9% to Rs. 26.18 on the BSE after the bank denied a media report claiming that the Reserve Bank of India had given in-principle approval for a promoter to acquire up to a 51% stake in the bank. The bank clarified that the report was factually incorrect and speculative, reaffirming its commitment to keeping stock exchanges informed of any significant developments as required by regulatory guidelines.
YES Bank shares rose 1.9% to reach Rs 26.18 on the BSE in early trading.
YES Bank stated that it would keep stock exchanges informed of any significant events as required under Regulation 30 of the Listing Regulations.
Shares of YES Bank Ltd climbed 2% on Tuesday after the bank refuted a media report claiming that the Reserve Bank of India had given in-principle approval for an incoming promoter to acquire up to a 51% stake in YES Bank, which would exceed the usual 26% promoter-holding limit under banking rules.
"The bank clarifies that the article's contents are factually incorrect and purely speculative. The RBI has not given any in-principle approval as stated in the article. This clarification is issued voluntarily to address the baseless media report," YES Bank informed stock exchanges.
YES Bank reiterated its commitment to informing stock exchanges of any material events as required under Regulation 30 of the Listing Regulations.
Following this clarification, YES Bank shares rose 1.9% to reach Rs 26.18 on the BSE in early trading.
A potential stake sale could value India's sixth-largest private bank by assets at around $10 billion, according to two sources with direct knowledge of the development cited by Mint.
The report mentioned that the RBI was still assessing the fit-and-proper status of the bidders.
The bank has reportedly appointed Citigroup to shortlist suitable promoters.
State Bank of India (SBI) and other lenders such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, and LIC collectively own about one-third of YES Bank.
In conclusion, YES Bank shares saw a notable increase after the bank issued a clarification refuting a speculative media report about the Reserve Bank of India's approval for a significant stake purchase by an incoming promoter.
The bank reassured stakeholders of its commitment to keeping the stock exchanges informed about any significant developments as required by regulatory guidelines.
Despite the market reaction, YES Bank emphasized the speculative nature of the report and maintained transparency in its communications.
Investors are reminded to seek advice from qualified financial advisors before making investment decisions.
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