Shares of YES Bank are in focus on Tuesday morning after a media report suggested that the Reserve Bank of India (RBI) has given its in-principle approval for up to 51 per cent stake purchase by an appropriate incoming promoter for YES Bank, which is higher than the 26 per cent promoter-holding limit in the usual course of business under banking rules.
The development, if it is true, has set up the stage for a new owner for the private lender that revived following a difficult situation four years ago. A likely stake sale may value India's sixth-largest private bank by assets at around $10 billion, two people with direct knowledge of the development told Mint. Business Today could not independently verify the report.
As per the report, the RBI is still accessing the fit-and-proper status of the bidders, the report suggested adding that the bank has appointed Citigroup to shortlist suitable promoters. State Bank of India (SBI) and other lenders such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank and LIC own about one-third stake in YES Bank.
Another report by NDTV suggested that SBI was open to selling most of its stake in YES Bank, four years since it rescued the lender. SBI, as per this report, is keen to sell its entire 23.99 per cent stake in YES Bank. International investors are being preferred for SBI's stake sale in YES Bank, NDTV quoted a source as saying. SBI is yet to find a suitable buyer, the report added.
Last week, YES Bank reported a 14.8 per cent year-on-year (YoY) jump in loans and advances at Rs 2,29,920 crore for the June quarter compared with Rs 2,00,204 crore in the same quarter last year.
In a filing to BSE, YES Bank said deposits for the quarter were up 20.8 per cent YoY to Rs 2,64,910 crore from Rs 2,19,369 crore in the corresponding quarter of last year. The bank said its deposit growth excluding CDs came in at 20.9 per cent YoY. On quarterly basis, advances grew 0.9 per cent but deposits growth fell 0.5 per cent.
YES Bank said its CASA came in at Rs 81,405 crore for the June quarter, up 26.1 per cent over Rs 64,568 in the same quarter last year. CASA ratio stood at 30.7 per cent in Q1 against 30.9 per cent in Q4FY24 and 29.4 per cent in the Q1FY24.
Note: YES Bank later clarified that the report regarding the RBI nod to stake sale was factually incorrect. "In this regard, the bank would like to clarify that the contents of the said article are factually incorrect and purely 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 told stock exchanges.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
FAQs
On why are Yes Bank shares rising today, stock market experts said that the global rating agency Moody's upgraded its outlook on the private lender from 'stable' to positive, which triggered strong buying in the early morning session.
Why is SBI selling Yes Bank shares? ›
Other media earlier reported the interest of Japanese and Middle Eastern lenders in acquiring SBI's stake in Yes Bank. SBI has already received RBI's verbal approval to divest its whole stake in Yes Bank, one of the sources said, adding that SBI is expecting to make a profit of around 100 billion rupees.
Is it good to buy Yes Bank shares? ›
According to analyst recommendations, Yes Bank Share has a "Buy" rating for the long term.
Why is the SBI bank share falling? ›
The fall in SBI share price came after the New York-based brokerage Goldman Sachs downgraded SBI to 'Sell' from 'Neutral.' Goldman Sachs also reduced its target price for SBI to Rs 742, down from Rs 841. This new target suggests a potential downside of 9.35 per cent from Thursday's closing price of Rs 818.60.
Why are banking shares going up? ›
CLSA said the net NPL/net worth ratio of the banking sector has declined to decadal lows, driven by better asset quality, stronger provision buffers and an improved capital position. PAT for the sector has rebounded sharply and has quadrupled over the past decade.
Why can I not sell Yes Bank shares? ›
If you hold more than 100 shares of Yes Bank, you are locked in for 3 years. You will not be able to sell it.
Is it worth it to buy SBI shares? ›
We maintain 'Buy' rating on SBI with a revised price target of Rs 1,035," YES Securities said. ICICI Securities also upped its SBI target to Rs 1,000 from Rs 980, valuing core banking business at unchanged multiple of 1.6 times FY26 ABV.
Which bank invested in Yes Bank? ›
Five Banks – SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Axis Bank — collectively hold 33.74 per cent stake in Yes Bank, with SBI alone accounting for the biggest chunk (23.99 per cent stake).
Is Yes Bank bullish or bearish? ›
Classic Moving Averages
| Period | Simple | Signal |
|---|
| 20-SMA | 23.79 | Bearish |
| 50-SMA | 24.54 | Bearish |
| 100-SMA | 24.11 | Bearish |
| 200-SMA | 23.98 | Bearish |
2 more rowsAccording to stock market experts, a post-Q1FY25 business update by the Yes Bank, the market expects that the private lender's profitability may remain steady. They also believe that the asset quality of Yes Bank may remain healthy in upcoming quarters, which implies a low risk of default or bad loans.
Overall, Yes Bank's stock has shown a positive trend in its performance on September 11, 2024. However, investors should carefully consider their options and consult with a financial advisor before making any investment decisions.
Who is the largest shareholder of Yes Bank? ›
The ownership structure of the bank is diverse, with both institutional and retail shareholders holding significant stakes. The State Bank of India (SBI), the largest scheduled commercial bank in India, is the largest shareholder, holding 23.99% of the shares.
What is the future prediction of SBI bank share? ›
State Bank of India has an average target of 939.78. The consensus estimate represents an upside of 19.63% from the last price of 785.55. View 29 reports from 10 analysts offering long-term price targets for State Bank of India. Reco - This broker has downgraded this stock from it's previous report.
Who owns most shares of SBI? ›
As of June 2024, the Government of India held around 57.54% equity shares in SBI. The Life Insurance Corporation of India, itself state-owned, is the largest non-promoter shareholder in the company with 9.02% shareholding.
Is it safe to invest in SBI bank? ›
SBI and HDFC Bank shares offer upside potential for investors as per experts. SBI's stable credit costs and balanced loan portfolio, along with HDFC Bank's expected margin improvement, make them favorable for long-term portfolio addition.
What is the forecast for Yes Bank share? ›
YES Bank Ltd. has an average target of 17.50. The consensus estimate represents a downside of -24.92% from the last price of 23.31.
Will Yes Bank share rise in 2025? ›
Yes Bank Share Price Target 2024 is between Rs 33 and Rs 16. What is the Yes Bank Share Price Prediction 2025? Yes Bank Share Price 2025 is predicted to remain between Rs 56 and Rs 19.
