SBI to sell its stake in Yes Bank worth Rs 18,420 cr by end of FY25: Report

India's largest lender State Bank of India (SBI) may sell its 24% stake in Yes Bank, which is worth Rs 18,420 crore, by the end of this financial year, that is by March 2025, Reuters reported on Tuesday.  

Japanese lender Sumitomo Mitsui Banking Corp and Dubai-based Emirates NBD are in advanced talks to acquire a majority stake in Yes Bank, two of these sources said. Sumitomo Mitsui is a unit of Sumitomo Mitsui Financial Group, Japan's second-biggest bank.

"Both the bidders are interested in acquiring a majority 51% stake in Yes Bank to get sizeable control of the bank's business," one of the sources told Reuters. "The Reserve Bank of India (RBI) has verbally okayed the proposal and due diligence is on."

On Monday, reports indicated that Akihiro Fukutome, the Global CEO of Sumitomo Mitsui Banking Corporation (SMBC), is scheduled to travel to India during the upcoming week. The purpose of the visit is to look into the prospect of acquiring a substantial share in Yes Bank Ltd. Fukutome is anticipated to engage in discussions with representatives from the Reserve Bank of India (RBI) and the State Bank of India (SBI) regarding the potential acquisition.

SBI currently holds about 24% in Yes Bank while 11 other lenders, including ICICI Bank and HDFC Bank, who were also involved in Yes Bank's rescue, together hold 9.74%.

Two private equity funds - CA Basque Investments and Verventa Holdings - collectively hold another 16.05%. The remainder is with some other investors and with the public.

"Bidders are seeking relaxation on the regulatory requirement that promoter shareholding be brought down to 26% within 15 years of the investment, and talks are on," said one of the sources, referring to the stake by controlling shareholders.

Earlier reports indicated that both bidders are interested in acquiring a majority 51% stake in Yes Bank to assert substantial control over the bank's operations. A report mentioned that the Reserve Bank of India (RBI) has verbally approved of this proposal.

The potential buyers are requesting a relaxation on the regulatory mandate that demands a reduction of promoter shareholding to 26% within 15 years post the investment. State Bank of India (SBI) anticipates a profit of approximately Rs 10,000 crore from this endeavor.

Yes Bank’s shares closed at Rs 24.12, down by 1.19%.