Rabobank sells 11% stake in Yes Bank

The Netherlands-based Rabobank on Tuesday sold about 11 per cent of its stake in new generation private sector lender Yes Bank as it plans to set up its own banking operation in the country.

The bank placed 3.73 crore (37.3 million) shares of Yes Bank to a diversified group of reputable institutional investors both domestic and foreign, Rabobank said in a statement.

It has thus reduced its stake in Yes Bank from around 15.9 per cent to 4.9 per cent, it said. Rabobank has reduced its stake in Yes Bank as it plans to enter banking space on its own.

Rabobank, as a part of its overall business plan for India, is obliged under the regulations to reduce its shareholding in Yes Bank pending approval of its application for a full banking licence in India, it said.

As per Indian banking regulations, a foreign bank that holds a stake in a domestic bank cannot simultaneously have independent operations.

Commenting on the development, member of the Executive Board of Rabobank Sipko Schat said, "We remain confident in the future prospects of Yes Bank and are retaining a 4.9 per cent stake in the bank."

He said, "We are a strong supporter of Yes Bank and its entrepreneurial management team, who have successfully established the bank as one of India's most successful and fastest-growing full-service providers."

Rabobank is keen to participate and contribute to India's further growth in these and other sustainable sectors including renewable energy and clean technology, he said. To this end, he said, Rabobank is keen to establish its own banking presence in India and has sought the necessary regulatory approvals.

In line with the reduction in their shareholding, Sipko Schat will step down from the board of Yes Bank, the statement said. Set up in 2004, Yes Bank has about 150 branches across the country and plans to open another 100 in the future.
Rabobank has been present in India for over 12 years and currently has a wholly owned non-bank finance subsidiary Rabo India Finance.