Top investor in Yes Bank cuts stake in the firm by nearly a third
It now holds a 5.4 percent stake after multiple sales in the open market between January 6 to May 6
May 11, 2021 / 03:22 PM IST
Private Equity firm Bay Tree India Holdings has sold a 2.1% stake in private player Yes Bank, it said in a statement. With this move, it reduces its holding in the private lender by almost a third.
It now holds a 5.4 percent stake after multiple sales in the open market between January 6 to May 6, Bloomberg reported.
Bay Tree was the largest anchor investor in the private lender during its $2 billion equity raising last year. The equity fund paid 22 billion rupees for about 55 percent of the investor portion.
Questions have been raised on the actual state of stress on private lender Yes Bank’s corporate NPA (non-performing assets) book ever since the fraud-hit bank’s hurried bail-out by the State Bank of India (SBI)-led consortium a year ago.
Also Read: Analysis | Yes Bank's Q4 numbers reflect a worrying picture of its actual stressed assets
Since then, the lender has resorted to cutting bank its' lending to companies, and has even attempted to woo depositors under the leadership of its new Chief Executive Officer (CEO) Prashant Kumar.
Despite this, Yes Bank continues to face challenges as bad loans remain high and the country faces turmoil amid a second wave of the coronavirus pandemic, the report said.