Yes Bank’s stake sale is now unlikely to happen in FY25 and may get delayed, ET Now reported, citing sources. SMBC has shown strong interest in acquiring a 51% stake in Yes Bank and the talks have stalled because of its insistence on 51% ownership, the report said
SMBC was in direct negotiations with the RBI but the Indian Central Bank was unwilling to compromise on the ownership control, the report said.
Shares of Yes Bank today fell nearly 2% to hit the day’s low of Rs 23.38 on the NSE.
As part of the Reserve Bank of Indiaβs βReconstruction Scheme 2020β, a consortium of eight banks led by government-owned lender State Bank of India (SBI) executed equity commitments in the bank. SBI initially bought shares worth Rs 6,050 crore for a 48% stake in Yes Bank at a consideration of Rs 10 per share.
The latest shareholding data as of June 30, 2024, shows SBI holding’s 23.33% stake in Yes Bank, followed by HDFC Bank’s holding of 2.75%. ICICI Bank, Kotak Mahindra Bank and Axis Bank hold 2.39%, 1.21% and 1.01%, respectively. Life Insurance Corporation (LIC) has a 3.98% holding.Yes Bank shares have rallied 34% in the past one year, outperforming Nifty Bank and broader Nifty which have delivered returns of 25% and 12% respectively in the said period.The bank had reported a standalone net profit of Rs 502.43 crore for the quarter ended June 30, 2024, which was up by 47% over Rs 342.52 crore reported by the lender in the year -ago period. The interest earned in the reported quarter stood at Rs 7,719.15 crore, higher by 19.8% from Rs 6,443.22 crore reported in the corresponding quarter of the previous financial year.
The net profit for Q1FY25 was up by 11.2% on the quarter-on-quarter basis versus Rs 452 crore in Q4FY24. The net interest margins (NIMs) for the reported quarter for Q1FY25 were steady on the QoQ basis at 2.4%, a company filing to the stock exchanges said.
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