Yes Bank's shares dropped by nearly 1 percent on the NSE this morning after reports emerged that the private lender is considering a search for a new promoter. But by 9:30 am, the stock was up by 2 percent. According to a report by Livemint, the bank is looking to sell up to 51 percent of its stake for a target valuation of between $8-9 billion. As of 9:30 am, the stock was trading at Rs 21.35. Over the past year, the stock has gained approximately 35 percent. In a filing on the BSE, the company responded that the report was speculative in nature "and the Bank does not feel that it is appropriate to comment on market speculations".
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According to the report, Citigroup's India unit has been enlisted to facilitate the search for a potential buyer for the bank with a current market cap of around $7.2 billion. Yes Bank, according to the report has initiated discussions and sent invitations to domestic and international financial institutions for the stake sale. Any new promoter holding more than 26 percent stake in the company will need special RBI approval, the report said.
Also read: Yes Bank seeks new promoter, eyes $8-9 billion valuation: Report
In Q3FY24, net profit for Yes Bank rose to Rs 231.6 crore from Rs 51.5 crore a year ago. Gross non-performing assets (NPA) for the same period remained at 2 percent for the same period while net NPA improved to 0.9 percent.
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