New Delhi: An informed source mentioned on Thursday that the insistence of bidders to have a 51 per cent stake in Yes Bank could potentially jeopardize the stake acquisition. When questioned about the possibility of the deal being completed by the end of the fiscal year, the source, who is not authorized to talk to the media, mentioned that the deal is currently facing uncertainty.
According to the source, negotiations for a deal have stalled due to the competitive efforts of all the bidders for the 51 per cent stake. The RBI is not happy about a foreign entity holding a majority stake in a large entity such as Yes Bank, according to the source. Reports indicate that two bidders involved are Japan's SMBC and Emirates NBD. The suitors are in direct communication with RBI, but the central bank is unwilling to give up ownership control. Currently, the rules permit an entity to hold up to 26 percent ownership in a bank, with a specified deadline for reducing higher stakes.
According to the source, there has been no advancement regarding the "fit and proper" components. The SMBC leadership visited the country last month in relation to the proposed acquisition and had meetings planned with both RBI and SBI. Yes Bank required a special bailout in 2020 where an SBI-led group of lenders invested in the bank to prevent any harm to the financial system. SBI, currently the primary shareholder of Yes Bank with a 24 per cent stake, has been interested in selling its shares by the end of FY25, as indicated by reports estimating the value of the stake.
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