RBI Denies Approval for YES Bank Stake Sale, Shares Surge

Shares of YES Bank witnessed a 2% surge as the private lender refuted a media report claiming Reserve Bank of India’s (RBI) in-principle approval for a 51% stake purchase by a potential incoming promoter, surpassing the standard 26% limit.

Dismissing the article’s assertions as speculative and factually incorrect, YES Bank clarified that RBI had not granted any such approval. The bank affirmed its commitment to compliance with regulations and pledged to disclose material events as required by the Listing Regulations.

Post clarification, YES Bank shares rose by 1.9% to hit Rs 26.18 on the Bombay Stock Exchange (BSE) early on Tuesday. Sources familiar with the matter hinted at a probable stake sale that could value the sixth-largest private bank in India at approximately $10 billion, shared insights with Mint.

According to reports, RBI is currently evaluating the prospective bidders’ fit-and-proper status. Citigroup has been appointed by the bank to screen potential promoters. Notably, State Bank of India (SBI) along with HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, and LIC collectively hold about one-third stake in YES Bank.