SBI aims to sell Yes Bank stake:
State Bank of India (SBI) currently holds approximately 24 percent of Yes Bank, while 11 other lenders, including ICICI Bank and HDFC Bank, who played a role in the bank’s rescue, collectively own 9.74 percent. Additionally, two private equity funds—CA Basque Investments and Verventa Holdings—together hold 16.05 percent. The remaining shares are distributed among various other investors and the public.
According to sources, bidders are seeking a relaxation of the regulatory requirement that mandates promoter shareholding to be reduced to 26 percent within 15 years of the investment. Discussions on this matter are ongoing. The sources requested anonymity as they are not authorized to speak with the media.
SBI has firmly denied any developments related to these discussions. In response to a query from Reuters, Yes Bank stated it had “no comments to offer regarding (the) stake sale as these inquiries are speculative in nature.”
Reports have also surfaced about the interest of Japanese and Middle Eastern banks in acquiring SBI’s stake in Yes Bank. Sources indicate that SBI has already received verbal approval from the Reserve Bank of India (RBI) to divest its entire stake in Yes Bank, with an expected profit of around ₹100 billion.
“SBI had rescued Yes Bank during a liquidity crisis, but now that the situation has improved, it is prudent to exit,” said one source. Once the RBI approves the bidders, the sale process is expected to move quickly, allowing SBI to negotiate valuation and other terms with the interested parties.
However, the process could face delays due to market volatility in Japan and a simultaneous government stake sale in IDBI Bank. Emirates NBD, one of the potential bidders for Yes Bank, has also expressed interest in acquiring IDBI Bank and may prefer to wait until that process is complete.
Both the RBI and Emirates NBD did not immediately respond to Reuters’ requests for comment. Sumitomo Mitsui Banking Corp, another potential bidder, declined to comment on individual deals.
