Yes Bank Defers Announcement on New Shareholders, Raises Concerns Over Quality of Offers

Yes Bank defers announcement on new shareholders. 

 

NO BANK

Yes Bank defers announcement on new shareholders. 

Banking On the Edge: The Board of private-lender Yes Bank on Tuesday failed to reach a final decision on potential investors even as it favoured a $500mn offer from Citax Holdings. Shares of Yes Bank slid 15% on Wednesday, the biggest decline since Oct. 1, after dropping 10% in the previous session.

 

This has heightened concerns about the quality of the offers it has received. “The delay is indicating that either there are regulatory issues or maybe the bank is not getting serious offers," said Siddharth Purohit, an analyst at SMC Global Securities. Livemint

 

“If the bank is unable to raise money in the next six months, it poses a grave danger to the financial system,” noted Suresh Ganapathy, an analyst at Macquarie Capital Securities (India).

 

Meanwhile...: Yes Bank's CEO Ravneet Gill in an interview on Wednesday said that the Board didn’t make a final decision on the investment offer from Citax as it is expecting one more investor to commit in the next few days. The lender wants to club both those deals together to raise more than $500 million at the same time, he said. Business Standard

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