Dubai's Emirates NBD considers acquiring controlling stake in Yes Bank
What's the story
Dubai's leading bank, Emirates NBD, is reportedly considering a bid to acquire a controlling stake in Yes Bank, one of India's top private sector banks. This information was confirmed by two undisclosed sources familiar with the matter, according to Moneycontrol. "Yes, Emirates NBD is exploring this opportunity,'' one source revealed. The initial bid submissions for Yes Bank are expected by the end of the month.
Stake sale
SBI-led consortium to sell its stake
The latest development comes as the State Bank of India-led consortium, which rescued Yes Bank in 2020, is reportedly planning to sell its stake. The consortium's three-year lock-in period for investors ended in March 2023. Investment bank Citi has been appointed to find a new promoter for the bank. As of April 19, Yes Bank had a market value of around ₹68,900 crore. A majority stake, or at least 51%, would be worth ₹35,139 crore.
Stakeholders
Yes Bank's shareholders list
The largest public shareholder in Yes Bank is the SBI, holding a 26.13% stake. Other stakeholders include Life Insurance Corporation of India (LIC), HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, and IDFC First Bank with a combined minority stake of 13.84%. Private equity firms Advent International and Carlyle, entered the lender in July 2022 and raised ₹8,900 crore for up to a 10% stake each.