Yes Bank may witness a sharp uptick in its share price at the exchanges on Monday amid reports that Singapore-based DBS Bank may acquire 51 percent stake in Yes Bank.
As per current rules banks (including foreign banks having branch presence in India) can acquire up to 10 percent stake (share) in other banks. However, in case of exceptional circumstances, such as weak banks, the Reserve Bank of India (RBI) may permit them a higher level of shareholding.
"The rumours of DBS acquiring a stake in Yes Bank are unfounded and baseless," a DBS spokesperson told IANS.
Yes Bank also confirmed that the DBS acquisition reports were false.
According to reports, the government of Singapore is negotiating with PMO and RBI for DBS to acquire 51 percent stake in Yes Bank.
Earlier, the bank in an exchange filing said that the bank had received strong interest from multiple foreign as well as domestic private equity and strategic investors.
The bank said, "It has now received a binding offer from a global investor for an investment of $1.2 billion in the bank through fresh issuance of equity shares, subject to regulatory approvals conditions as well as Bank's board and shareholders approvals".
Update: This story has been updated with comments from DBS and Yes Bank
First Published: IST