Yes Bank share price rise after Refutes 51% Stake Sale Report; Shares Rise

Yes Bank shares increased by 2% during the morning trade session on July 9, following the lender's clarification that reports of a 51% stake sale are "factually incorrect and purely speculative."

News reports had suggested that the Reserve Bank of India (RBI) approved the sale of up to a 51% stake in Yes Bank, potentially leading to new ownership of the private lender, which faced a severe crisis four years ago. As of 9:45 am IST, Yes Bank share price were trading at ₹26.07 on the NSE, up approximately 1.5% from the previous close.

The Mint reported that such a sale could value India's sixth-largest private bank by assets at about $10 billion, marking the largest acquisition in the country's banking sector.

However, in a filing with the stock exchanges, Yes Bank stated, "The RBI has not given any in principle approval as stated in the article. This clarification is issued by the company voluntarily to dispel the baseless media article."

According to the news report, a source mentioned that certain bidders would only be interested if allowed to acquire a controlling stake of 51% or more. Consequently, the RBI had supposedly agreed to a 51% sale of control to an appropriate incoming promoter.

While RBI officials have verbally agreed to the sale proposal, a formal written approval has yet to be issued. The RBI is currently evaluating the suitability of the prospective bidders, according to another source cited by the Mint.

State Bank of India (SBI) and other lenders, who collectively hold a 33.74% stake in Yes Bank, would have an exit route as a result of the purported RBI clearance.

SBI owns 23.99% of Yes Bank, with HDFC Bank holding 2.75%, ICICI Bank 2.39%, Kotak Mahindra Bank 1.21%, and Axis Bank 1.01%. Additionally, LIC holds 3.98%, CA Basque Investments 8.74%, and Verventa Holdings 9.21%. The total shareholding by banks in Yes Bank has decreased from 36.74% in March to 35.18% in April.