Shares of YES Bank will be under focus during the trading session on Thursday on the back of multiple reasons including trading a rating upgrade from Moody's and interest from buyers in the private lender from Japan and Middle east, as per the reports from Bloomberg.
First, Abu Dhabi Bank PJSC is among potential suitors for a roughly $5 billion stake in YES Bank, said a report from Bloomberg citing media sources. The Middle Eastern lender is weighing a bid for as much as a 51 per cent stake in India's private lender, said the sources to Bloomberg.
The stake sale in the private lender has drawn preliminary interest from Japan as well. Japanese entities such as Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, are reported to be interested in the lender's stake. However, it remains unclear how strong their appetite for a deal is and if they will proceed for the same, the report added.
On the other hand, YES Bank Ltd dismissed the media reports of getting RBI's principle approval for its 51 per cent stake sale through an exchange filing earlier this week. The private lender has called the contents of the said article as factually incorrect and purely speculative in nature.
Global rating agency Moody's has affirmed YES Bank’s Ba3 long-term foreign currency and local currency ratings. The agency also changed the outlook to positive from stable. YES bank's asset quality has significantly improved and non-performing loan (NPL) ratios have declined, said Moody's
The change in outlook reflects Moody’s expectations that a gradual improvement in YES Bank's depositor base and lending franchise will help improve its core profitability over the next 12-18 months. The positive outlook takes into account the improvement in the bank's asset quality and capitalization over the past 2-3 years.
Shares of YES Bank Ltd settled at Rs 24.97 on Wednesday, falling 3.22 per cent for the day. The private lender commanded a total market capitalization of Rs 78,250 crore. Shares of YES Bank have surged more than 10 per cent in 2024 so far, while the stock is up 45 per cent in the last one year.