The State Bank of India (SBI) is looking to finalize a deal by March to sell its 24% stake in Yes Bank, worth 184.2 billion rupees ($2.2 billion). This move comes as Japanese lender Sumitomo Mitsui Banking Corp and Dubai-based Emirates NBD are in advanced negotiations to acquire a majority 51% stake in Yes Bank, according to sources familiar with the matter.
Sumitomo Mitsui, a subsidiary of Japan's second-largest bank, and Emirates NBD are both vying for significant control over Yes Bank’s operations. The Reserve Bank of India (RBI) has reportedly given verbal approval for the proposal, and due diligence is currently underway.
Yes Bank underwent restructuring by the RBI in March 2020 with the help of a consortium of Indian banks, including SBI, after the bank faced severe financial distress. SBI's current 24% stake makes it the largest shareholder in Yes Bank, with other lenders such as ICICI Bank and HDFC Bank collectively holding 9.74%. Additionally, two private equity funds, CA Basque Investments and Verventa Holdings, hold a combined 16.05% stake.
The potential buyers are reportedly seeking regulatory concessions, specifically regarding the requirement to reduce promoter shareholding to 26% within 15 years. Negotiations on these terms are ongoing.
This deal could mark a significant shift in Yes Bank’s ownership structure and provide the bank with new leadership after its earlier financial difficulties.
