First Abu Dhabi Bank Denies Interest in Yes Bank Stake
In a recent development, First Abu Dhabi Bank PJSC (FAB) has clarified that it is not evaluating any potential offer for acquiring a stake in Yes Bank, contrary to recent speculations. This announcement comes after a Bloomberg report suggested that FAB was among the possible bidders for a significant stake in the Indian bank.
Background of the Rumors
On July 11, Bloomberg reported that FAB was considering a bid for up to a 51% stake in Yes Bank, potentially amounting to a $5 billion investment. This news generated considerable attention, suggesting that the Middle Eastern lender was eyeing a substantial share in the Indian banking sector.
Official Denial
However, FAB has firmly denied these claims. According to a Reuters report on July 11, the bank stated that it is not evaluating any offer for a stake in Yes Bank. This denial contradicts the earlier Bloomberg report and puts to rest the rumors of FAB’s potential involvement in Yes Bank.
Other Interested Parties
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Apart from FAB, the Bloomberg report also mentioned preliminary interest from Japanese financial giants such as Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. However, the actual interest level and commitment from these entities remain unclear.
Yes Bank’s Response
In parallel, Yes Bank has denied receiving any in-principle approval from the Reserve Bank of India for a 51% stake sale. The bank’s spokesperson reiterated that no such approval has been granted, contradicting claims of an imminent stake sale.
State Bank of India’s Role
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State Bank of India (SBI), which rescued Yes Bank four years ago, remains its largest shareholder with a 24% stake. SBI has been gradually reducing its holding in Yes Bank but remains a crucial player in the bank’s future.
Leadership Changes and Potential Delays
The upcoming end of SBI Chairman Dinesh Khara’s tenure in August could potentially delay any major deals involving Yes Bank. Leadership transitions often impact strategic decisions, and this scenario might be no different.
Conclusion
Despite the buzz generated by recent reports, First Abu Dhabi Bank has categorically denied any plans to acquire a stake in Yes Bank. This clarification aligns with Yes Bank’s own statements and refutes the claims made by earlier reports. The focus now shifts to other potential investors and the future strategic moves of Yes Bank and its major stakeholders.
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