SBI To Cut Its Stake In Yes Bank After Lock-In Period Ends: Report

State Bank of India (SBI) may cut down its stake in Yes Bank after its lock-in period ends on March 13, Reuters reported. The lock-in period was imposed by Reserve Bank of India (RBI) as part of the restructuring plan for Yes Bank. SBI wants to reduce its stake in Yes Bank in phases and it does not want to have a stake there indefinitely, as per sources quoted in the report.

After the RBI drew a restructuring scheme for Yes Bank in March 2020, SBI and other creditors including ICICI Bank, Axis Bank, IDFC FIRST Bank, Kotak Mahindra Bank and Housing Development Finance Corp agreed to invest in Yes Bank.

As of 31st December, SBI, the country’s largest bank, holds 26.14 per cent of stake in Yes Bank and is still the largest single shareholder in the bank. According to the restructuring plan, SBI cannot cut down its holding below 26 per cent before the completion of its three-year lock-in period from the date of capital investment. SBI had acquired shares in Yes Bank at Rs 10 apiece

At the same time, ICICI Bank, Axis Bank, IDFC FIRST Bank had 2.61 per cent, 1.57 per cent and 1 per cent stakes respectively at the end of December 2022. Additionally, LIC has 4.34 per cent stake and HDFC has 3.48 per cent stake in Yes Bank.

According to a source, SBI will soon meet with RBI to consider its ownership future in Yes Bank, after which a proposal will then be forwarded to the central bank.

In September 2022, Yes Bank had commented that it can withdraw reconstruction plan once the lock-in period had passed.