Yes Bank Clarification on Stake Sale Speculations

Shares of Yes Bank opened a percent higher in Tuesday’s trading session following the leading private lender’s clarification regarding the speculative reports on a 51% stake sale. 

Clarification from Yes Bank

In a regulatory filing, Yes Bank addressed the rumors circulating in the media. The bank clarified that the Reserve Bank of India (RBI) had not given any in-principle approval for a 51% stake sale as claimed in the reports. 

Misleading Media Reports

Earlier, a media report suggested that the RBI had given its nod for an incoming promoter to purchase up to 51% stake in Yes Bank, which is significantly higher than the usual 26% promoter-holding limit under banking rules. This speculation led to a flurry of activity around Yes Bank’s shares, prompting the bank to issue a formal statement to set the record straight.

Upcoming Financial Results

Yes Bank’s Board of Directors is scheduled to meet on Saturday, July 20, 2024, to consider and approve the financial results for the quarter ended June 30, 2024. Investors and stakeholders are keenly awaiting the outcomes of this meeting to gauge the bank’s financial health and strategic direction.

Quarterly Performance Update

In a recent provisional update, Yes Bank reported a 0.9% growth in loans and advances on a quarter-on-quarter (QoQ) basis. However, deposits saw a slight decline of 0.5% QoQ, and the Current Account Savings Account (CASA) ratio experienced a 1.1% QoQ decrease. These metrics will be closely analyzed in the upcoming financial results to understand the bank’s performance in more detail.

Stock Performance

On Tuesday, shares of Yes Bank were trading higher by 0.48% at Rs 25.80. The stock opened the session at Rs 26.08, reaching an intraday high of Rs 26.14 per share on the NSE. Currently, the stock is trading around its 20-Simple Moving Average (SMA), with the 14-period Relative Strength Index (RSI) on the daily timeframe above the 60-mark, indicating a bullish momentum.

Year-to-Date Gain

In 2024, Yes Bank’s share price appreciated by 21%, reflecting positive investor sentiment and the bank’s efforts to stabilize and grow its business. As the financial community anticipates the forthcoming quarterly results, Yes Bank’s stock remains a focal point for market watchers and investors alike.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.