Yes Bank Denies Stake Sale Reports: Clarifies Discussions Are Preliminary and Speculative

Yes Bank witnessed a sharp surge in its share price on Tuesday after media reports claimed that the Japan-based Sumitomo Mitsui Banking Corporation (SMBC) had secured approval from the Reserve Bank of India (RBI) to acquire a 51% stake in the private lender. 

The stock jumped over 8% during early trade, fuelled by optimism over a potential foreign acquisition. However, the gains were short-lived as the share price pared back by the end of the trading session.

As of 10:18 AM on May 7, the share price of Yes Bank was trading down by 0.73%. 

Yes Bank Responds

In response to the widespread speculation, Yes Bank issued a formal clarification to the stock exchanges. The bank denied any concrete development involving SMBC and described the reports as both speculative and factually inaccurate. 

The clarification stated that while the bank is engaged in routine dialogues with various stakeholders, no discussions have reached a level of materiality that would require disclosure under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Statement from the Bank: Growth-Focused but No Deal Confirmed

Yes Bank reiterated its focus on growth and confirmed that it regularly explores opportunities aimed at increasing shareholder value. However, it emphasised that such discussions are preliminary and do not imply any finalised agreements or transactions.

In its press release, the bank stated: “The Bank is on a growth trajectory and routinely explores opportunities with various stakeholders, which are aimed at enhancing shareholder value. However, such discussions are preliminary and do not warrant a disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015, at this stage. The information pertaining to these discussions as set out in the article is speculative at this time and is not factually correct.”

RBI Approval: The Regulatory Hurdle

Under current RBI guidelines, any acquisition of more than a 10% stake in an Indian bank requires prior approval from the central bank. While the media reports suggested that such approval had been granted to SMBC, subsequent sources clarified that the RBI had not received any formal proposal for such a transaction. This casts further doubt on the validity of the reports that triggered investor excitement in the market.

Read More: Yes Bank Share Price in Focus Following SBI’s Possible Stake Sale. 

Conclusion

At present, there is no confirmation of a stake sale involving SMBC or any other foreign investor. Yes Bank’s clarification underscores that while discussions with stakeholders are ongoing, they are part of its regular strategic processes and not indicative of any imminent transaction. Investors and market observers are advised to rely only on official disclosures and verified information published by the company or regulatory bodies.

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