A major UAE-based bank is reportedly in advanced talks to acquire a substantial stake in an Indian bank, with the potential investment estimated to be worth billions of dollars. UAE Ambassador to India, Abdulnasser Alshaali, confirmed the ongoing discussions during an interview with CNBC TV-18 but did not disclose the name of the bank involved, citing market sensitivities. However, speculation has grown that Yes Bank could be the target of this significant investment.
Alshaali stated that certain issues still need to be resolved before the deal can move forward, but he remained optimistic about a positive outcome. “There are some matters that need to be sorted out for this to go ahead,” he said. It is widely believed that an Abu Dhabi-based bank is likely to be the purchaser of a large stake in the Indian lender.
This UAE development follows Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s visit to India, during which he held key discussions with Indian Prime Minister Narendra Modi.
These talks focused on enhancing bilateral relations in various sectors, particularly finance, trade, and infrastructure. Alshaali highlighted the growing economic ties between the UAE and India, saying, “We are the second-largest export destination for India, the third-largest trade partner, and the fourth-largest investor.”
There have been previous reports, based on sources like Bloomberg and Reuters, that potential buyers for a $5 billion stake in Yes Bank include prominent banks from Dubai and Abu Dhabi. Although First Abu Dhabi Bank was initially considered one of the potential suitors, it later denied any interest in purchasing a stake.
Yes Bank underwent restructuring by the Reserve Bank of India (RBI) in March 2020 after facing financial difficulties. India’s State Bank of India holds about 24 percent of Yes Bank, while other local banks and private equity funds control additional shares. Reports indicate that bidders are seeking regulatory relaxation on promoter shareholding requirements as part of the negotiations.
