YES Bank shares: For three primary reasons, investors will be keeping an eye on the shares of YES Bank Ltd. Against the devastation in the mid-and small-cap counters, the private lenders have been finding it difficult to maintain momentum. Still, it has come back into the news due to a combination of factors.
The National Payments Corporation of India (NPCI) approved YES Bank on March 14, 2024 (a Thursday) to serve as a merchant acquiring bank for both new and current UPI merchants for One 97 Communications, the parent company of fintech player Paytm. The lender made this announcement in an exchange filing on Thursday.
YES Bank has received approval to enable the transition of the Paytm UPI App (owned by One 97 Communication) – UPI consumer application and UPI collection for offline merchant acquisition via One 97 Communications and online merchants via Paytm Payment Service (PPSL), which were previously managed by Paytm Payments Bank (PPBL), according to the statement.
In a separate exchange filing, YES Bank provided the explanation requested by exchanges regarding news articles indicating that the institution was looking for a new promoter at a valuation of $9 billion. However, the lender declined to comment on the reports, noting their speculative nature. There are no material events that are required to be disclosed, the bank added.
Thirdly, investors will be watching to see if YES Bank can continue its positive trend from Thursday. After a severe fall of more than 36% from its 52-week high levels of Rs 32.81, hit on February 9, 2024, the stock finished 12% higher at Rs 23.43 on Thursday.
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As per media reports, YES Bank, ranked as the sixth-largest private bank, reportedly intends to sell up to 51 percent of its stake, aiming for a valuation of $9 billion, surpassing its current market capitalization. Citigroup’s India unit has purportedly been enlisted to assist in the search for a potential buyer.
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