First Abu Dhabi Bank denies interest in acquiring stake in Yes Bank: Report

First Abu Dhabi Bank statedthat it is not considering any potential offer to acquire a stake in Yes Bank Ltd, according to media reports.

According to a recent Bloomberg report citing persons with knowledge of the situation, First Abu Dhabi Bank PJSC was one of the possible suitors for a roughly $5 billion stake in Yes Bank Ltd. The Middle Eastern lender was considering an offer for up to a 51% share in Yes Bank, according to the news report.

As per Bloomberg new report, there has been early interest in the share sale from Japanese companies, such as Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. However, it is unknown if these companies would move forward with the offer or how strong their desire is for a deal.

After saving Yes Bank from bankruptcy four years ago due to an overwhelming volume of bad loans, State Bank of India has reduced its ownership stake in the privatebank. With a 24% stake, it continues to be its largest stakeholder. The August expiration of SBI chairman Dinesh Khara's term might cause a delay in the Yes Bank transaction. It has been suggested by a panel constituted by the government that Challa Sreenivasulu Setty take his position, highlighted Bloomberg in its news report.

Yes Bank share pricesurged by about 9% following a revision by global ratings agency Moody's to 'positive' from'stable,' citing improvements in the lender's lending franchise and depositor base.

The improved capitalisation and asset quality of the bank throughout the previous two to three years is included into the optimistic forecast.

The "Ba3" long-term (LT) foreign currency (FC) and local currency (LC) bank deposit ratings of Yes Bank were also affirmedby Moody's. They predict that over the following 12 to 18 months, the bank's core profitability, which is determined by pre-provisioning earnings to total assets, would progressively increase from 0.8% in the fiscal year that ended in March 2024 to over 1.2%.

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