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The process of buying a stake in Yes Bank has run into trouble. The reason for this is that the bidders want a 51% stake in the bank. An informed source said that due to this the deal is not moving forward.
According to sources, the Reserve Bank of India (RBI) is concerned that a foreign company should have such a large stake in Yes Bank. Two companies named Japan's SMBC and Emirates NBD are bidding for this stake.
Both the companies are directly contacting RBI, but RBI is not ready to give a 51% stake. According to the current rules, any one company can have only a 26% stake in a bank.
The source said there has been no progress on various aspects of the deal. Yes Bank was bailed out in 2020 under a special plan after it got into a financial crisis, in which lenders led by SBI bought stakes.
SBI, which holds the largest stake at 24% in the bank, plans to sell its stake by 2024-25.
