RBI does not want to give control of the bank to foreign companies
The process of buying stake in private sector Yes Bank may be in danger. Actually, the buyer is insisting on keeping 51 percent stake in this Indian private bank. A source related to the matter has shared some important information in this matter.
When asked if the deal will be completed by the end of the current financial year, the source said that there seems to be a hitch in the deal. The source said that all the bidders buying stake in Yes Bank are insisting on taking 51 percent stake in the bank and due to this the talks on this deal do not seem to be moving forward.
SMBC and Emirates NBD want full control of Yes Bank
According to the source, the Reserve Bank of India (RBI) is not satisfied that a foreign institution has a 51 percent stake in a large financial institution like Yes Bank. Two buyers in the form of Japan’s SMBC Bank and Emirates NBD are in the fray to buy stake in Yes Bank. Both the contenders bidding for a controlling stake in Yes Bank are talking directly to the RBI, but the RBI is not ready to give ownership control of Yes Bank to these two companies.
No progress on ‘fit and proper’ aspects of the deal
As per the current rules, a maximum of 26 per cent stake is allowed in any bank by any entity and in case the stake exceeds this limit, a certain timeline has been set for reducing it. The source said that there has been no progress on the ‘fit and proper’ aspects related to this deal.
SBI has 24 percent stake in Yes Bank
Yes Bank was bailed out in 2020 under a special deal after it got into a financial crisis. Under this, a group of lenders led by SBI bought stake in Yes Bank. SBI, which holds the largest 24 percent stake in the bank, wants to sell its stake by the end of FY 2024-25.
With PTI inputs
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