Yes Bank Stake Sale In Limbo As RBI Said To Be Against 51% Purchase — Profit Exclusive
SBI, which owns 23.99% stake in Yes Bank, has been looking to offload its shares, which is likely to be delayed now.
State Bank of India's plans to sell stake in Yes Bank Ltd is likely to see delays as Reserve Bank of India is not in favour of selling majority stake in the private bank.
According to a person with direct knowledge of the matter, the banking regulator is yet to give a clear 'fit and proper' approval. Moreover, RBI is not in favour of a foreign buyer taking over 51% stake in the Yes Bank, this person said.
Currently, negotiations between Yes Bank and potential buyers have stalled, owing to these developments. According to the person quoted above, potential bidders are negotiating with RBI directly on this matter, however, the stalemate still continues.
SBI currently owns 23.99% stake in Yes Bank.
According to the person quoted above, SBI's board is yet to take up the stake sale proposal at its board level as there is no clarity on the timeline of the sale. However, India's largest lender has been looking to sell its stake in the private sector lender, NDTV Profit had previously reported.
SBI, along with other lenders, bought considerable stake in Yes Bank as part of a rescue plan initiated in March 2020. This was done as a way to infuse equity in to the private lender, as its financial position had weakened considerably. A stake sale would provide an exit option to these lenders.
