Yes Bank shares fell sharply in trade on Monday, down 8% to Rs 14.4 as the three-year lock-in period, since 13 March, 2020, expired, allowing private lenders and retail investors to sell their shares today onwards. Last week, the lock-in period for SBI, which was mandated not to decrease its holding below 26%, ended. The SBI-led consortium had infused Rs 10,000 crore in Yes Bank to help it meet liquidity, capital and other critical parameters. Ever since the crisis, the stock has been under pressure and on Friday, it closed at Rs 16.55 on the NSE.
In March 2020, nine banks led by SBI picked up almost 49% of Yes Bank stocks at Rs 10 per share, a premium of Rs 8 on the face value, as part of the RBI bailout. As per the RBI’s rescue plan, these nine financial entities were required to hold 75% of their shares bought as part of the rescue plan for three years. As of December 2022, SBI held 26.14% or 6,050 million shares of Yes Bank, while eight other banks originally held almost 11 billion shares in the bank. HDFC & HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank, and IDFC First Bank also held almost 11 billion shares in the lender.
As of June, ICICI Bank held 3%, while Axis Bank
“Till March 2023, we are required to hold a 26% stake in Yes Bank. If it all, our stake comes within 26% till March 2023, I am quite okay with that. Beyond that, we’ve not thought at the board level. So, I am unable to comment anything relating to our further course of action,” said SBI chairman Dinesh Khara during December quarter earnings call. Most analysts and experts have a sell call on the scrip.