Yes Bank‘s shares rose on Tuesday after it released a statement denying media reports of a majority stake sale.
What Happened: The private lender quashed the contents of a news article that reported the supposed divestment, labelling it "factually incorrect" and "speculative in nature".
"RBI has not given any in principle approval as stated in the article and this clarification is issued by the Company voluntarily to dispel the baseless media article," Yes Bank added in the press release issued on Tuesday.
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The media report suggested that the Reserve Bank of India (RBI) approved a stake sale of up to 51% in the company and granted tentative approval to the bank and several of its major shareholders a few weeks ago.
It also added another source saying that the RBI had not yet issued a written approval although it had agreed to the sale plan in discussions. The central bank is continuing to evaluate whether the bidders meet the fit-and-proper criteria, the report added.
The potential sale could have reportedly valued India’s sixth-largest private bank by assets at around $10 billion (₹83,503 crore) and would be the largest acquisition in India’s banking sector.
Price Action: Shares of Yes Bank were up 1.99% at ₹26.19 on Tuesday morning.
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