YES Bank, SBI shares: RBI not in favour of 51% stake sale, says report; stocks react
YES Bank shares were trading 1.88 per cent lower at Rs 23.38 on BSE. SBI shares, on the other hand, were trading 1.01 per cent at Rs 776.05.
- Sep 12, 2024,
- Updated Sep 12, 2024 1:16 PM IST
Shares of YES Bank Ltd were trading lower while that of State Bank of India (SBI) were trading higher as a fresh media report suggested that the Reserve Bank of India (RBI) is not in favour of selling of a majority stake in the private lender. The SBI plan to sell stake in YES Bank is likely to see delays, NTDV Profit reported.
The fresh report came a month after Reuters suggested that Japanese lender Sumitomo Mitsui Banking Corp and Dubai-based Emirates NBD were in advanced talks to acquire a majority stake in YES Bank. Sumitomo Mitsui is a unit of Sumitomo Mitsui Financial Group, Japan's second-biggest bank.
The fresh report quoted a source saying the banking regulator was yet to give a clear 'fit and proper' approval and was opposed to the idea of a foreign buyer acquiring over 51 per cent stake in the YES Bank.
YES Bank shares were trading 1.88 per cent lower at Rs 23.38 on BSE. SBI shares, on the other hand, were trading 1.01 per cent at Rs 776.05.
The report suggested that the board members of SBI are yet to take up the stake sale proposal as there has been no clarity on the timeline of the sale, adding that negotiations between YES Bank and potential buyers have stalled.
That said the largest PSU lender was still looking to offload its stake in the private sector lender. SBI, along with other lenders, bought stakes in YES Bank in March 2020, as part of a rescue plan. The SBI held 23.99 per cent stake in the private lender at the end of June quarter. A total of 11 other lenders, including ICICI Bank and HDFC Bank, who were also involved in Yes Bank's rescue, together hold 9.74 per cent.
The Reuters report quoting sources last month suggested the bidders were seeking relaxation on the regulatory requirement that promoter shareholding be brought down to 26 per cent within 15 years of the investment.
Shares of YES Bank Ltd were trading lower while that of State Bank of India (SBI) were trading higher as a fresh media report suggested that the Reserve Bank of India (RBI) is not in favour of selling of a majority stake in the private lender. The SBI plan to sell stake in YES Bank is likely to see delays, NTDV Profit reported.
The fresh report came a month after Reuters suggested that Japanese lender Sumitomo Mitsui Banking Corp and Dubai-based Emirates NBD were in advanced talks to acquire a majority stake in YES Bank. Sumitomo Mitsui is a unit of Sumitomo Mitsui Financial Group, Japan's second-biggest bank.
The fresh report quoted a source saying the banking regulator was yet to give a clear 'fit and proper' approval and was opposed to the idea of a foreign buyer acquiring over 51 per cent stake in the YES Bank.
YES Bank shares were trading 1.88 per cent lower at Rs 23.38 on BSE. SBI shares, on the other hand, were trading 1.01 per cent at Rs 776.05.
The report suggested that the board members of SBI are yet to take up the stake sale proposal as there has been no clarity on the timeline of the sale, adding that negotiations between YES Bank and potential buyers have stalled.
That said the largest PSU lender was still looking to offload its stake in the private sector lender. SBI, along with other lenders, bought stakes in YES Bank in March 2020, as part of a rescue plan. The SBI held 23.99 per cent stake in the private lender at the end of June quarter. A total of 11 other lenders, including ICICI Bank and HDFC Bank, who were also involved in Yes Bank's rescue, together hold 9.74 per cent.
The Reuters report quoting sources last month suggested the bidders were seeking relaxation on the regulatory requirement that promoter shareholding be brought down to 26 per cent within 15 years of the investment.