White knights who came to the rescue of Yes Bank less than a month ago are already pulling out investments.
Data released by Yes Bank on its shareholding pattern as of March 31 showed that at least three of the eight financial institutions that had saved Yes bank from falling apart have sold small parts of their stake within two weeks of making the investment.
According to data available on the BSE website, Kotak Mahindra Bank sold 4.76 crore shares after March 17, Federal Bank sold 5.87 crore shares and IDFC First Bank sold 4.02 crore shares.
While Kotak Mahindra Bank sold 9.5 percent of its stake in Yes Bank, IDFC First Bank sold 16.1 percent of the stake and Federal Bank sold 19.6 percent of its holding between March 17 and March 31, 2020.
The Reserve Bank of India had on March 13 approved a rescue plan for Yes Bank, where State Bank of India and six other private lenders had bought stakes in the bank.
Lenders have a lock-in period of three years, where they are not permitted to sell over 75 percent of their holding in Yes Bank.
SBI and the remaining lenders - HDFC, ICICI Bank, Bandhan Bank and Axis Bank had not sold any shares as of March 31.
In this episode of Big Story, Moneycontrol's Sakshi Batra shares insights on why the private lenders have sold part of their stakes in Yes Bank.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
