Yes Bank may see a sharp uptick in its share price at the exchanges on Monday amid reports that Singapore-based DBS Bank may acquire 51 per cent stake in Yes Bank.
According to current rules, banks (including foreign banks having a branch in India) can acquire up to 10 per cent stake (share) in other banks. However, in case of exceptional circumstances, such as weak banks, the Reserve Bank of India (RBI) may authorize them a higher level of shareholding.
However, IANS question to Yes Bank concerning the DBS acquiring controlling stake did not receive a response at the time of filing this story.
As per the reports, the Government of Singapore is negotiating with PMO and RBI for DBS to acquire 51 per cent stake in Yes Bank.
Earlier, the bank in an exchange filing said that the bank had gained strong interest from multiple foreign as well as domestic private equity and strategic investors.
The bank stated, "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".