YES Bank is looking for new promoter to sell 51% stake in Bank, Also Check SBI, LIC stake in YES Bank

Yes Bank is currently seeking a new promoter to sell a majority stake in the bank. The target price for the stake is set between USD 8 to 9 billion, surpassing its current market capitalization of USD 7.2 billion. The search for a new owner has garnered interest from various financial institutions, with Citigroup’s India unit playing a significant role in facilitating the process.
Yes Bank has initiated discussions with banks and financial institutions in Japan, West Asia, and Europe, inviting them to consider acquiring at least a 51 per cent stake in the bank. The growing international interest in India’s banking landscape is evident as some Japanese banks have already begun the due diligence process.
However, there are regulatory guidelines that need to be followed. Any new promoter seeking a stake greater than 26 per cent would require special permission from the Reserve Bank of India (RBI).
The potential stake sale presents an opportunity for major shareholders, such as State Bank of India (SBI) (29 per cent), Life Insurance Corp. Of India (LIC) (4.34 per cent), HDFC Bank Ltd. (3 per cent), and ICICI Bank Ltd. (2.6 per cent), to potentially exit their investments in Yes Bank. These institutions had intervened in 2020 to rescue Yes Bank from a financial crisis, and now, the bank is poised for a fresh chapter under new ownership.
The change in ownership in 2020, with major stakeholders like State Bank of India (SBI) stepping in, has positively impacted Yes Bank’s financial performance. Profits have surged, and there has been an improvement in the bank’s net interest margin (NIM) as it adopts safer lending practices.
Despite the bank’s improved performance, concerns remain, particularly regarding the quality of loans issued by Yes Bank. The bank is diligently working to address any issues and ensure stability.
In conclusion, finding a new owner for Yes Bank could be a significant milestone. It has the potential to introduce more competition in the banking sector and result in improved services for customers. However, the success of this endeavor relies on identifying the right buyer and adhering to proper procedures throughout the process.