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Mumbai After making an effort to bail out Yes Bank last month, three private sector lenders already sold part of their stakes between March 17 and March 31, BSE share data showed.
The Federal Bank sold the largest number of shares at Rs 5.86 million, followed by Kotak Mahindra Bank at Rs 4.72 million and IDFC First Bank at Rs 4.02 million. While Federal Bank’s stake in Yes Bank decreased 47 basis points (bps) to 1.92% as of March 31, Kotak Mahindra Bank’s share fell 37 bps to 3.61% and IDFC First Bank’s share decreased 32 bps to 1.67% between March 17 and 31, the data showed
Other lenders such as State Bank of India (SBI), Axis Bank, Bandhan Bank, and Housing Development Finance Corp. (HDFC) have not sold any shares and therefore saw no change in their stake. However, ICICI Bank has purchased 78,300 more shares after March 17, although its stake has remained unchanged at 7.97%.
On March 13, the government approved a rescue plan for Yes Bank backed by SBI. Under the plan, domestic investors, including SBI, Housing Development Finance Corp, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank, and IDFC First bank invested ₹Rs 10 billion at Yes Bank.
SBI President Rajnish Kumar, the largest investor in Yes Bank, had said at a press conference on March 17 that SBI remains committed to the investment and will not sell any part of its 48% stake before the expiration of a blockade. partial three years. in period. The lockout period was part of the rescue efforts to ensure Yes Bank remains well capitalized. Kumar also said that SBI could invest again if necessary in the second round of financing that is expected to take place in six months.
“I am free to sell shares. Let me assure you that for three years not a single share will be sold. But for any bank that has invested, everyone expects a decent IRR (internal rate of return),” Kumar had said.
To be sure, lenders have a three-year lock on only 75% of their holdings, and meanwhile they are not prohibited from selling the rest. Yes Bank’s shares in BSE closed at ₹29.6 on Wednesday, 0.5% less than its previous close.
