Suspense Crime Sach Ka Dam
Yes Bank: The process of buying a stake in the private sector Yes Bank may be in danger due to the bidders’ insistence on keeping a 51 percent stake in the bank. An informed source expressed this apprehension on Thursday. When asked whether the deal would be completed by the end of the current financial year, the source said that the deal seems to be stuck in a dilemma. A source familiar with the developments said that due to the insistence of all the bidders on taking a 51 percent stake in the bank, the talks on any deal do not seem to be moving forward.
Who are the contenders
According to the source, the Reserve Bank of India ( RBI ) is uncomfortable with a foreign institution holding a 51 percent stake in a large financial institution like Yes Bank. Two bidders are in the fray in the form of Japan’s SMBC and Emirates NBD.
Both the contenders bidding for a controlling stake in Yes Bank are talking directly to the RBI, but the central bank is not ready to give up ownership control.
What are the rules now?
As per the existing norms, a maximum of 26 percent stake is allowed in any bank by any entity, and in case the stake exceeds this limit, a fixed time frame has been prescribed for reducing it.
The source said there had been no progress on the “fit and proper” aspects of the deal.
SBI wants to sell a stake
Yes Bank was bailed out in 2020 after getting into a financial crisis under a special deal. Under this, a group of lenders led by SBI bought a stake in Yes Bank.
SBI, which holds the largest 24 percent stake in the bank, wants to sell its stake by the end of the financial year 2024-25.
