SBI Denies Reports of Yes Bank Stake Sale via Block Deal

State Bank of India (SBI) has denied reports of a stake sale in private lender Yes Bank. Rumors had circulated suggesting that SBI was planning to sell Rs 5,000-7,000 crore worth of Yes Bank shares via a block deal. However, in a regulatory filing to the stock exchanges, SBI clarified that the media reports were factually incorrect.

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The stake monetization was seen as potentially helpful for SBI, as the state-run bank had made pension-related provisioning in the previous quarter. SBI currently holds a 26.13% stake in Yes Bank, with the stake valued at Rs 22,900 crore.

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HDFC Bank, which recently received approval from the RBI to increase its stake in Yes Bank up to 9.5%, held a 3% stake at the end of the third quarter. The additional 6.5% stake that HDFC Bank intends to acquire is valued at Rs 5,747.20 crore.

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Shares of Yes Bank were trading flat at Rs 29.74 on the BSE, while SBI’s stock climbed 3.71% to trade above Rs 700. Other banks like ICICI Bank, Axis Bank, Kotak Mahindra Bank, and IDFC First Bank also have stakes in Yes Bank.

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Earlier this week, SBI held meetings with investment firms such as Goldman Sachs AM, Nomura AM SG, Sentosa, Prudence, PG Investment Management, and M&G. Kotak Securities also met with SBI on Tuesday.

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This clarification from SBI comes after media reports suggested that the bank was considering a complete stake sale in Yes Bank via a block deal. However, Yes Bank has also clarified that it is not involved in any negotiations related to the news.

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As of now, there are no material events that need to be disclosed under Regulation 30 of the listing regulations, according to Yes Bank.