First Abu Dhabi Bank denies interest in acquiring stake in Yes Bank: Report

  • Media reports suggest First Abu Dhabi Bank PJSC was considering a stake in Yes Bank Ltd, but the bank denies any potential offer.

Dhanya Nagasundaram
First Published11 Jul 2024, 10:50 AM IST
Yes Bank share price jumps 8% after strong Q4 results 2024. Do you own?
Yes Bank share price jumps 8% after strong Q4 results 2024. Do you own?

First Abu Dhabi Bank statedthat it is not considering any potential offer to acquire a stake in Yes Bank Ltd, according to media reports.

According to a recent Bloomberg report citing persons with knowledge of the situation, First Abu Dhabi Bank PJSC was one of the possible suitors for a roughly $5 billion stake in Yes Bank Ltd. The Middle Eastern lender was considering an offer for up to a 51% share in Yes Bank, according to the news report.

As per Bloomberg new report, there has been early interest in the share sale from Japanese companies, such as Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. However, it is unknown if these companies would move forward with the offer or how strong their desire is for a deal.

Also Read | Yes Bank share price Today Live Updates : Yes Bank Stock Sees Gain in Trading Today

After saving Yes Bank from bankruptcy four years ago due to an overwhelming volume of bad loans, State Bank of India has reduced its ownership stake in the privatebank. With a 24% stake, it continues to be its largest stakeholder. The August expiration of SBI chairman Dinesh Khara's term might cause a delay in the Yes Bank transaction. It has been suggested by a panel constituted by the government that Challa Sreenivasulu Setty take his position, highlighted Bloomberg in its news report.

Also Read | Yes Bank Stock Price: Five things Moody’s said that sent the share price soaring

Yes Bank share pricesurged by about 9% following a revision by global ratings agency Moody's to 'positive' from'stable,' citing improvements in the lender's lending franchise and depositor base.

The improved capitalisation and asset quality of the bank throughout the previous two to three years is included into the optimistic forecast.

The "Ba3" long-term (LT) foreign currency (FC) and local currency (LC) bank deposit ratings of Yes Bank were also affirmedby Moody's. They predict that over the following 12 to 18 months, the bank's core profitability, which is determined by pre-provisioning earnings to total assets, would progressively increase from 0.8% in the fiscal year that ended in March 2024 to over 1.2%.

Also Read | Moody’s revises Yes Bank outlook to ’positive’ from ’stable’

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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₹588.25 Cr

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7.93 Cr

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20 Yrs

First Published:11 Jul 2024, 10:50 AM IST
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