First Abu Dhabi Bank (FAB), the biggest bank in the UAE, has denied a media report published on Wednesday that it was in the process of acquiring a stake in India’s Yes Bank.
Bloomberg reported FAB, and Japan’s Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, as companies interested in the $5 billion stake being offered by the Indian lender.
The report quoted unidentified sources as saying that FAB was weighing a bid for as much as a 51 percent stake in Yes Bank.
On Thursday, FAB filed a compliance notice in the Abu Dhabi Securities Exchange (ADX), calling the news report “unfounded”.
“Recent reports suggesting that FAB is considering acquiring a stake in Yes Bank Ltd are unfounded,” said the statement.
“To prevent further speculation, FAB categorically states that it is not evaluating any possible offer for a stake in Yes Bank Ltd.
“As communicated previously, the Bank remains focused on executing its growth strategy and delivering strong returns to its shareholders. Any significant developments shall be communicated to our stakeholders in accordance with regulatory requirements.”
Yes Bank is India’s sixth-largest private bank by assets at approximately $10 billion. It was in trouble four years ago because of issues with bad loans, and needed to be rescued. State Bank of India (SBI) is the largest stakeholder in the company with 24 percent.
On Thursday, Yes Bank also denied a report in Indian media which said it had received approval from the Reserve Bank of India (RBI) to sell up to 51 percent stake in the company.
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