Yes Bank Stake Sale: The matter of stake sale in Yes Bank has stopped for now. The Reserve Bank of India (RBI) is uncomfortable with the majority stake of Yes Bank going to a foreign bank. People familiar with the matter have given this information to Moneycontrol. According to sources, Japan’s giant banking company Sumitomo Mitsui Banking Corp (SMBC) has shown interest in buying 51 percent stake in Yes Bank. However, differences have arisen in the talks between SMBC and RBI on this issue. SMBC is insisting on acquiring 51 percent stake in Yes Bank, but RBI is not in favor of it.
A source said, “SMBC is in direct talks with RBI on this matter, but the central bank is not willing to relax the majority stake.” Due to this, the stake sale of YES Bank is now expected to be delayed, while earlier it was expected to be completed by the fourth quarter of the current financial year.
Earlier, Moneycontrol had reported in a report on August 1 that RBI had asked investors interested in a controlling stake in Yes Bank to reconsider their demand. This also included the demand to retain a 51% majority stake. According to banking licensing rules, promoters have to reduce their stake to 26% within 15 years.
RBI had proposed to the investors to gradually reduce their stake so that they cannot retain their 51% stake for a long time.
State Bank of India (SBI) has about 24% stake in Yes Bank. According to media reports, SBI wants to sell its stake. However, the board of SBI has not yet discussed the proposal to sell stake in Yes Bank in the board meeting. Apart from this, Axis Bank, Kotak Mahindra Bank, ICICI Bank and HDFC Bank together hold 7.4% stake. Private equity firms Carlyle and Advent Group hold about 14% stake in YES Bank.
Meanwhile, Yes Bank shares fell 1.55 percent today and closed at Rs 23.45. Its shares have gained only 3.5 percent so far this year. However, in the last one year, it has given a return of about 33 percent to its investors.
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