Money & Banking

Yes Bank says no communication on a stake purchase

Our Bureau Mumbai | Updated on March 05, 2020 Published on March 05, 2020

File photo   -  REUTERS

SBI says will disclose developments if any to stock exchanges

Yes Bank has said it has not received any communication of a potential stake purchase by a consortium led by State Bank of India.

“The Bank has not received any such communication from RBI or the government or regulatory authorities or from the SBI and we are unaware of any such decision,” it said in a clarification to the stock exchanges on Thursday.

SBI also clarified to the exchanges, “We will abide by the timelines under Regulation 30 of SEBI (LODR) Regulations 2015 in disclosing the developments, if any in the matter to Stock Exchanges.”

Yes Bank also stressed that it is as part of the usual course of its business exploring various means of raising capital and funds through issuance of securities to diverse set of investors to meet its business and regulatory requirements.

“We shall keep the stock exchanges duly informed about the disclosures required,”it further said.

The clarifications come amidst reports that a consortium led by State Bank of India (SBI) will buy a stake in the troubled private sector lender.

According to a report by Bloomberg, the Government has approved a proposal for SBI to lead a consortium that will acquire a stake in Yes Bank. The Finance Ministry, SBI or Yes Bank are yet to confirm the development.

 

Yes Bank scrip, which surged by over 27 per cent in early morning trade, was still 22 per cent up on the Bombay Stock Exchange (BSE) and was trading at Rs 35.75 apiece.

In January this year, SBI Chairman Rajnish Kumar had stressed that Yes Bank would not be allowed to fail and he was optimistic that some solution would be found for the lender.

The private sector lender has been working to raise capital and had said last month that it has received non-binding expressions of interest ("EOIs") from several prominent investors as part of its capital raising plans.

These include JC Flowers & Co; Tilden Park Capital Management LP; OHA (UK) LLP (part of Oak Hill Advisors) and Silver Point Capital.

The lender had also delayed its third quarter results and had proposed to announce it before March 14.

Published on March 05, 2020

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