State Bank of India is looking to sell its entire stake in Yes Bank four years after it rescued the lender.
SBI had invested the amount in the bank as part of a rescue deal in 2020.
SBI has yet to find a suitable buyer but prefers international investors for the stake sale.
The development follows another report that Yes Bank dismissed earlier on Tuesday, regarding a majority stake sale.
Price Action: Yes Bank was trading 1.48% higher at ₹26.06 on Tuesday afternoon, while SBI’s share price gained 1.3% to trade at ₹867.35.
State Bank of India is looking to sell its entire stake in Yes Bank four years after it rescued the lender.
What Happened: SBI is planning to offload its entire 23.99% stake in the private lender, NDTV Profit reported, citing two people aware of the matter. SBI had invested the amount in the bank as part of a rescue deal in 2020.
SBI has yet to find a suitable buyer but prefers international investors for the stake sale. Domestic investors are also reportedly in the running.
The final decision on the matter will be reportedly taken after the Reserve Bank of India (RBI) approves a bidder as "fit and proper". Typically, companies aiming to acquire a stake of 10% or higher in a private bank must obtain clearance from the central bank.
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Once approved, the stake sale would mark the culmination of one of the largest rescue operations by the banking regulator, the report added.
The development follows another report that Yes Bank dismissed earlier on Tuesday, regarding a majority stake sale.
The media report suggested that the RBI approved a stake sale of up to 51% in the company and granted tentative approval to the bank and several of its major shareholders a few weeks ago. The bank rubbished the report calling it “factually incorrect” and “speculative in nature”.
Price Action: Yes Bank was trading 1.48% higher at ₹26.06 on Tuesday afternoon, while SBI’s share price gained 1.3% to trade at ₹867.35.
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