Shares of Yes Bank declined on Tuesday after CNBC-TV18 reported, citing banking sources, that the earlier Mint report claiming Sumitomo Mitsui Banking Corp (SMBC) received Reserve Bank of India (RBI) approval to acquire a 51% stake in the lender is incorrect.
Earlier in the day, Yes Bank shares had surged nearly 9% after Mint reported that SMBC had secured RBI approval to take over a majority stake in the private lender, valuing the deal at approximately $1.7 billion. According to that report, SMBC was considering two routes — acquiring up to 26% followed by a share swap, or staying just under 26% to avoid triggering an open offer.
However, sources familiar with the matter told CNBC-TV18 that no such application is pending with the RBI from SMBC to acquire any stake in Yes Bank. The exclusive rebuttal cast doubt on the validity of the reported deal, prompting a reversal in investor sentiment.
As of the March quarter, State Bank of India holds a 24% stake in Yes Bank, followed by institutions like HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank and LIC. Other notable stakeholders include Vervanta Holdings Ltd. (9.2%) and CA Basque Investments (6.84%). Nearly 62 lakh small retail shareholders also hold a combined 22.55% stake in the bank.
Yes Bank was previously rescued in 2020 through a coordinated bailout led by SBI after it faced a liquidity crisis. Since the exit of founder Rana Kapoor in 2019, the bank has operated without a promoter.
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