<http://www.dealcurry.com/2010064-Rabobank-May-Oflload-Stake-in-Yes-Bank.htm>

*Rabobank *is planning to offload its 15.9% stake in *Yes Bank Ltd*, inorder
to start its own branch in India.

As per Indian banking regulations, a foreign bank that holds a stake in a
domestic bank cannot simultaneously operate a branch network in the country.

*Rabobank International Holding BV* has started negotiations with investors
for its stake sale and may take place in phased manner due to more than one
investor.

Yes Bank was started in 2004 by *Rana Kapoor* and Late *Ashok Kapur*.
Rabobank had committed to remain invested in the lender for at least five
years atleast till March 2009.

Rabobank currently operates in India through Rabo India Finance Ltd, a
non-banking financial company (NBFC).

Rabobank's stake in Yes Bank declined initially from 20% to 15.9%, after Yes
Bank raised capital from the market and other investors.

Promoter Rana Kapoor holds 5.89% stake, while wife of Late Ashok Kapur, *Madhu
Kapur* holds 10.34%.

RBI’s norms do not allow a single entity to hold more than 5% and a group
more than 10% in a bank and hence Rabobank will not be able to sell its
stake to a single entity.

In January, the bank had raised Rs1,033 crore through QIP, which led to an
equity dilution of 11.3%.

Yes Bank's capital adequacy ratio stood at 20.6% with an asset base of
Rs.36,382.5 Cr as on March 2010. It posted a net profit of Rs477.7 Cr crore
for 2009-10.


-- 
Regards

Hardik Shah

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