By Baiju Kalesh, Preeti Singh and Saikat Das
First Abu Dhabi Bank PJSC is considering a bid for a significant stake in India’s Yes Bank Ltd., valued at approximately Rs 41,760 crore. This potential move has also attracted interest from other entities, including Japanese financial groups Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc.
Yes Bank’s shares saw a notable increase following the news, with the Mumbai-based lender experiencing a 25% growth in market value this year.
Although discussions are ongoing, the stakeholders involved may opt for alternative investment options, leading to a change in the size of the stake sale. This uncertainty was highlighted by First Abu Dhabi Bank, which denied any evaluation of an offer for Yes Bank. Meanwhile, State Bank of India, the current largest shareholder of Yes Bank, continues to navigate its stance following a rescue mission four years ago.
As global investors explore Indian market opportunities, Middle Eastern and Japanese banks are actively seeking expansion avenues in the region, aiming to capitalize on India’s economic growth potential.
Published 11 July 2024, 07:20 IST