Carlyle gets a conditional nod from the RBI for its bid to pick up 9.99% stake in Yes Bank.

Yes Bank had to be bailed out by other banks last year after alleged malfeasance by its founders meant that a large portion of its loans were in fact turning sour.

 

Private equity majors The Carlyle Group and Advent have gotten the Reserve Bank's nod to own up to 9.99 percent of Yes Bank, the private sector lender said on Thursday. In July of this year, the two private equity funds announced their intention to invest over Rs 8,000 crore in Yes Bank, subject to regulatory approval. A regulatory nod is required for owning over 5 percent of a bank.

 

Carlyle gets a conditional nod from the RBI for its bid to pick up 9.99% stake in Yes Bank.

In a stock exchange filing, Yes Bank said through separate letters on November 30, RBI has given "conditional approval" for both funds to own 9.99 percent of the paid-up share capital of the lender by subscribing to equity shares and share warrants.

 

"The investors (Carlyle and Advent) are evaluating the conditions. The investors and the bank will engage with the RBI to seek an early resolution of the conditions to procure the final approval on this matter," the statement added.

 

Yes Bank had to be bailed out by fellow lenders in a 2020 RBI-led scheme after alleged malfeasance by its founders led to a huge chunk of loans turning sour. The SBI-led scheme had to be implemented after the bank failed to raise capital. The investment by the PE funds will be one of the biggest in the banking sector in recent times, and was announced after the bank was able to make progress on a plan to house nearly Rs 50,000 crore of bad loans in a newly carved asset reconstruction company, for which it has tied up with JC Flowers. Yes Bank shares closed 0.58 percent lower at Rs 17.05 apiece on the BSE on Friday, as against gains of 0.29 percent on the benchmark.