SBI Keen To Sell 24% Stake In Yes Bank

According to two people in the know SBI has expressed interest to offload its entire 23.99% stake in Yes Bank. The investment was part of a rescue plan led by SBI to save Yes Bank in March 2020.

The seller is yet to find a suitable buyer, as it assesses potential plans for the same. However a final decision on the matter would be taken after the Reserve Bank of India approves a bidder as ‘fit and proper’, the first of the two people quoted above said.

According to the second person in the know, international investors are being preferred for SBI’s stake in Yes Bank. However, domestic investors will also be considered.

Typically, any bidder seeking to buy 10% or more stake in a private bank must get RBI’s clearance.

"We categorically deny any developments in this matter," a SBI spokesperson told NDTV.

Queries regarding the matter mailed to Yes Bank remain unanswered.

The stake sale, once cleared, would be the conclusion of one of the largest rescue operations initiated by the banking regulator. In March 2020, a group of lenders led by SBI had infused approximately Rs 10,000 crore in Yes Bank to shore up its capital as part of a reorganisation plan. SBI had at the time ended up with 40% stake in Yes Bank owing to this.

After the rescue, in July 2020, Yes Bank raised Rs 15,000 crore as part of one of India’s largest follow-on public offers. Since then, Yes Bank has raised Rs 8,900 crore from private equity investors such as Carlyle Group and Advent International in July 2022.