YES Bank shares jump as private lender says RBI nod report factually incorrect

Shares of YES Bank Ltd climbed 2 per cent in Tuesday's trade after the bank denied a media report that suggested the Reserve Bank of India had given its in principle approval for up to 51 per cent stake purchase by an appropriate incoming promoter for YES Bank, which the report suggested was higher than the 26 per cent promoter-holding limit in the usual course of business under banking rules.

"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.

YES Bank said it would keep the stock exchanges informed of any material events as required under Regulation 30 of the Listing Regulations. Following the development, shares of YES Bank rose 1.9 per cent to hit a high of Rs 26.18 on BSE in early trade. 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.

As per the report, the RBI was still accessing the fit-and-proper status of the bidders. The bank, as per the report, 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.