- Yes Bank Ltd. is currently engaged in discussions with international investors to potentially sell a stake, as reported by sources familiar with the matter. Among the leading contenders are Emirates NBD, one of the largest lenders in the United Arab Emirates, along with Japan's Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp. These entities have reportedly expressed preliminary interest in acquiring a majority share in Yes Bank, according to the sources. Notably, the focus appears to be on international investors, with domestic investors not being actively pursued at this time.
- If finalized, this transaction could lead to State Bank of India (SBI) divesting its stake in Yes Bank, as per the sources. The move follows SBI's instrumental role in Yes Bank's recovery in 2020, with the lock-in period for investors ending in March 2023. Since then, reports suggest that SBI has been contemplating an exit strategy. Currently, SBI holds a 26.13% stake in Yes Bank, while other major stakeholders include Life Insurance Corp. of India, HDFC Bank Ltd., ICICI Bank Ltd., Kotak Mahindra Bank Ltd., Axis Bank Ltd., and IDFC First Bank, collectively holding a 13.8% stake.
Why it matters
In financial terms, Yes Bank has shown promising performance, with a notable 345% increase in net profit during the third quarter of the previous fiscal year, reaching Rs 231.5 crore on a year-on-year basis.
