Yes Bank in stake sale talks to give exit to its lenders
Yes Bank is working towards giving an exit to its current shareholders, particularly State Bank of India (SBI), managing director and chief executive Prashant Kumar told ET. Kumar also confirmed that the lender is in talks with potential investors for selling its stake.
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«Banks led by State Bank of India had come in to support the reconstruction scheme. As per regulations, banks cannot remain invested in other banks,» said Kumar in an exclusive interaction with ET. «At some point, we need to provide exit to our shareholders, especially SBI. It's very difficult to give you a definitive timeline but it is something that everyone will try to do at the earliest.»
Kumar also confirmed that the shareholders and Yes Bank were in talks with potential investors. «That is a continuous process,» he said.
Multiple reports have highlighted that Yes Bank is in talks with a clutch of international investors to sell a majority stake in the lender.
At present, SBI and other Indian banks jointly own 33.74%. In March 2020, SBI, erstwhile Housing Development Finance Corp, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank, and IDFC First Bank had cumulatively invested ₹10,000 crore in Yes Bank to save the lender from bankruptcy.
Kumar also said that the bad loan sale to JC Flowers has turned out to be a lucrative transaction for the lender.
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