Moneycontrol

Private banks in difficulty for a few years Yes Bank There are signs of good days ahead. Many investors have expressed their desire to buy a stake in Yes Bank. CNBC-TV18 quoted sources as saying Washington-based private equity firm Carlyle Group is seeking to acquire a 10% stake in Yes Bank through the convertible debt route.

This private equity firm could be considered for a stake on the convertible debt route. One of the reasons behind this is that State Bank of India (SBI) is expected to own 26% stake in Yes Bank by March 2023.

According to the channel, Carlyle Group plans to invest through foreign direct investment (FDI) instead of REITs. Specifically, eligible as an FDI under FEMA (Foreign Exchange Management Act) rules. Purchase of at least 10% equity is required.

The issue is expected to be considered by the bank when the new board meets in mid-July.

Moneycontrol could not independently confirm the news.

The market was shocked by the rise in interest rates, the largest weekly drop in the global market after 2020

It should be noted that according to the rules, to hold a 4.9% stake in a bank, the company in question must obtain the approval of the Reserve Bank of India (RBI). Apart from this, the RBI can increase the individual stake in any bank to 10% and banks limit the stake of financial institutions to 15%.

Previous reports in this regard had indicated that Carlyle was planning to invest 3,750-4,500 crore rupees ($50-60 million) in Yes Bank. Reports had surfaced when Yes Bank was in talks with private equity investors to raise 7,500 to 11,250 crore rupees ($1 billion to $1.5 billion) to bolster its balance sheet. Whereas after two years he was placed under the protection of the SBI.

Note that Moneycontrol had announced in April this year that the Carlyle Group would sell its entire stake in SBI Cards and Payments Services Ltd through a block deal for Rs 2,558 crore. CA Rover Holdings, a Carlyle Group company. He held 2,920 crore shares or 3.09% stake in SBI Cards in the December 2021 quarter. The company was seeking to sell its entire stake in the business through a block transaction.

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