Yes Bank Surges 13% as HDFC Bank Group Gains RBI Approval for Stakes

6 Feb 2024 , 12:50 PM

Yes Bank surged up to 13% in early NSE trade on February 6, following Reserve Bank approval for HDFC Bank Group to acquire stakes in it and five other lenders.

At the time of writing, Yes Bank stock traded at ₹25.10, marking a 10.09% increase from the previous close.

HDFC Bank Group disclosed that RBI allowed the acquisition of up to 9.5% stakes in Yes Bank, along with IndusInd Bank, Axis Bank, ICICI Bank, Suryoday Small Finance Bank, and Bandhan Bank.

The approval, valid for one year, extends to investments by HDFC Asset Management Company (AMC), HDFC Ergo, and HDFC Life Insurance, as stated in the regulatory filing.

The approval will be revoked if the HDFC Bank Group fails to acquire the stakes within the specified timeframe.

In Q3 FY24, Yes Bank reported an impressive 349.7% YoY increase in net profit, reaching ₹231.6 crore from ₹51.5 crore in the last fiscal year. The operating profit for the same period grew by 5.4% to ₹864 crore.

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