[ad_1]
SBI To Cut Stake In Yes Bank: SBI, the country’s largest public sector bank, which bailed out the private sector Yes Bank in 2020, may reduce its stake in Yes Bank. The lock-in period for SBI in Yes Bank is going to end on March 6, 2023.
According to Reuters report, State Bank of India is not in favor of retaining stake in Yes Bank forever. And SBI is considering reducing its stake in a phased manner. To reduce the stake, SBI will have to take approval from the Reserve Bank of India.
In 2020, SBI had earlier acquired 49 per cent stake in Yes Bank. But according to the information jammed with the stock exchange on 31 December 2022, SBI now has 26.14 per cent stake. SBI is the largest stakeholder in Yes Bank. According to Yes Bank’s bailout plan, SBI cannot reduce its stake to less than 26 per cent till 3 years after the date of infusion of capital.
In March 2020, when the RBI dissolved the old board of Yes Bank and took over, apart from SBI, ICICI Bank, Axis Bank, IDFC First Bank, Kotak Mahindra Bank, HDFC bailed it out of crisis by infusing capital into it. According to the rules of the bailout plan, it was necessary for the financial institutions to hold 75 percent of the total purchased shares for three years. This rule was also applicable to retail investors.
ICICI Bank holds 2.61 per cent in Yes Bank, Axis Bank holds 1.57 per cent, IDFC First Bank holds 1 per cent, LIC holds 4.34 per cent and HDFC holds 3.48 per cent. Yes Bank shares closed at Rs 17.50, down 4.37 per cent in today’s trade.
read this also
LPG Price Hike: LPG cylinder prices increased after elections
[ad_2]
Source link