MUFG Makes Play for Yes Bank Control

4 Oct 2024 , 09:08 AM

According to news reports, Japan’s Mitsubishi UFJ Financial Group (MUFG), the world’s second-largest bank holding company, has re-entered the bidding for a majority share in Yes Bank.

This comes a month after MUFG’s $2 billion investment bid for HDB Financial, HDFC Bank’s non-banking financing unit, was rejected by the private lender’s board in August.

Yes Bank’s current market value is Rs 68,586.98 crore. A 51% stake sale would be India’s largest banking sector merger and acquisition.

Yes Bank is looking for a new owner four years after a central bank-managed rescue and subsequent revival. MUFG was one of several potential contenders chosen earlier this year to review the Yes Bank merger, but it withdrew after a limited engagement. Following the breakdown of the HDB talks, MUFG is alleged to have renewed its interest in Yes Bank.

Earlier this week, Yes Bank reported an 18.3 percent YoY increase in total deposits for the September quarter, reaching Rs 2,77,173 crore. However, this was a small slowdown from the bank’s 20.9 percent YoY deposit increase reported in the June quarter. Deposits increased by 4.6% sequentially from the June quarter, indicating a stable but slower rate of growth.

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