YES Bank: SBI may sell Rs 5,000-7,000 crore worth shares, says report; stock reacts

Shares of YES Bank Ltd were trading flattish in an otherwise weak trading session on Thursday, even as brokers pitch State Bank of India (SBI) to sell shares in the private lender via block deals, a media report suggested. SBI could be looking to sell Rs 5,000-7,000 crore worth of YES Bank shares via block deal, CNBC Awaaz reported quoting sources. SBI, the report said, may avoid equity dilution if YES Bank shares are sold in open market for capital requirements. The stake sale is likely by March 31, the report added.

Data showed SBI owned 7,51,66,66,000 shares, or 26.13 per cent stake, in YES Bank at the end of December quarter. This stake was worth Rs 22,900 crore as of Thursday's trade. The stake monetisation is seen helping SBI, as the state-run PSB made pension-related provisioning in the December quarter.

HDFC Bank, which recently received the RBI nod to increase stake in YES Bank up to 9.5 per cent, held 3 per cent stake at the end of third quarter. The 6.5 per cent additional stake that HDFC Bank intends to buy was valued at Rs 5,747.20 crore, as of Thursday's trading price.

At 11.13 am, shares of YES Bank were trading at Rs 29.74 on BSE, down 0.30 per cent. The BSE Sensex was down 650.41 points or 0.90 per cent at 71,501.59. Shares of SBI topped Rs 700 level. They were up 3.71 per cent at Rs 700.55. The stock hit a high pf Rs 718.80 earlier today.

ICICI Bank (2.61 per cent), Axis Bank (1.57 per cent), Kotak Mahindra Bank (1.32 per cent) and (IDFC First Bank 1 per cent) also owned stakes in the private lender. The CNBC Awaaz report noted that the sale of YES Bank shares may not to attract any taxes for SBI and that there was no lock in for SBI on sale of YES Bank shares. The SBI board would be discussing the sale of shares in YES Bank soon, the report said adding that the proceeds of the stake sale would be used to boost balance sheet liquidity.

SBI had met with Goldman Sachs AM, Nomura AM SG, Sentosa, Prudence, PG Investment Management and M&G on Wednesday, the company informed stock exchanges. Earlier on Tuesday, State Bank of India met with Kotak Securities.

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