A consortium of prominent Asian banks, sovereign wealth funds, and private equity firms is reportedly interested in acquiring a majority stake of 51% in Yes Bank. This potential deal could value the private lender between $8 billion and $9.5 billion. However, Yes Bank has firmly denied receiving approval from the Reserve Bank of India (RBI) for the sale of a 51% stake.


Currently, five major Indian banks—SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Axis Bank—hold a combined 33.74% stake in Yes Bank. State Bank of India (SBI) is the largest stakeholder with a 23.99% share. Additionally, foreign direct investors, such as CA Basque Investment (8.74% stake) and Verventa Holdings (9.21% stake), collectively hold 17.95%, while foreign portfolio investors possess 10.28%.


Analysts suggest that the Indian banks are looking to divest their holdings in Yes Bank. Their investment, made under the 'Yes Bank Ltd. Reconstruction Scheme 2020' initiated by the RBI and sanctioned by the Indian government, was purely financial. The investment, made at ₹10 per equity share in March 2020, has fulfilled its intended purpose.


The process to sell the stake began earlier this year, with various potential buyers being speculated upon. According to Bloomberg, First Abu Dhabi Bank PJSC, Mitsubishi UFJ Financial Group Inc, and Sumitomo Mitsui Financial Group Inc are leading the race to acquire the 51.69% stake. Additionally, sources indicate that several large funds and private equity firms have expressed interest.


On Tuesday, Yes Bank categorically denied reports claiming that the RBI had approved the 51% stake sale. In an exchange filing, the bank stated, "The RBI has not given any in-principle approval as stated in the article and this clarification is issued by the company voluntarily to dispel the baseless media article."


On March 5, 2020, the RBI, in collaboration with the Central government, took control of Yes Bank's board for 30 days due to severe financial instability. As part of the rescue effort, seven banks and the former HDFC Ltd injected ₹10,000 crore into Yes Bank, with SBI alone contributing ₹6,050 crore, resulting in a 48.2% stake in March 2020.


Yes Bank's shares reached a 52-week high of ₹32.85 in February this year, recovering from a low of ₹15.70 in October last year.