Yes Bank Not On First Abu Dhabi Bank's Investment Radar: Report

First Abu Dhabi Bank is reportedly not looking to acquire a stake in India's Yes Bank, as previous media reports had suggested. 

What Happened: The Middle Eastern lender has denied it is seeking a roughly $5 billion (₹41,782 crore) stake in the private bank, Reuters reported.

Earlier on Thursday, Bloomberg reported that First Abu Dhabi was vying for as much as a 51% stake in the company. Japanese financial firms, including Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, were also weighing an investment, it added.

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Yes Bank has found itself tied up in speculation that its shareholders are looking for an exit four years since rescuing the private lender. On Tuesday, the bank clarified that it hasn't received any in-principle approval from the Reserve Bank of India (RBI) for a 51% stake sale, dismissing media reports. 

On the other hand, another news article said SBI is planning to offload its entire 23.99% stake in the private lender. SBI has yet to find a suitable buyer but prefers international investors for the stake sale, the report added.

Credit Rating: In a separate development on Thursday, Yes Bank's shares jumped after ratings agency Moody's hiked its outlook on the private lender's performance from stable to positive, anticipating gradual improvements in the bank’s performance.

Yes Bank's improving deposit base and lending operations are expected to strengthen its profitability over the next 12-18 months, the agency added.

Price Action: Shares of Yes Bank were up 4.49% at ₹26.08 on Thursday afternoon.

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Posted In: EquitiesNewsMarketsState Bank of IndiaYes Bank