Yes Bank Shares on SBI’s 3-Year Lock in Expiry Day, Market Expectations?

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Yes Bank Shares on SBI’s 3-Year Lock in Expiry Day, Market Expectations?

By Malvika Gurung -- Shares of the banking company Yes Bank (NS: YESB ) traded with slight gains in the morning session on Monday, as the country’s largest lender State Bank of India’s mandatory lock-in period of three years in Yes Bank is expiring on March 6.

The private lender is under focus on Monday and the stock was last seen trading 0.95 higher at Rs 17/share in the intraday trade.

Market sources and experts believe that SBI (NS: SBI ) could pare its holding in Yes Bank on the expiry of the lock-in period, which would lead to a downside in the private lender’s stock.

According to some sources, SBI is no longer in favour of retaining a stake in Yes Bank and would consider cutting its holding in the company on the expiry of the lock-in period.

As on Dec 31, 2022, SBI held a 26.14% stake in Yes Bank, the largest single shareholder. The mandatory lock-in period was put into place by the Indian central bank RBI, as part of Yes Bank’s restructuring.

Initially, SBI acquired a 49% stake in Yes Bank, which it later trimmed to 26.14%.

Other banks holding a stake in the rescued lender include ICICI Bank (NS: ICBK ) with a 2.61% shareholding, Axis Bank (NS: AXBK ) holding a 1.57% stake and IDFC First Bank (NS: IDFB ) with a 1% stake, along with HDFC Bank (NS: HDBK ) and Kotak Mahindra Bank (NS: KTKM ).

These lenders’ three-year lock-in will end on March 13, 2023, which may further drive Yes Bank’s shares lower.

Read Also: SBI Zooms 6% on Reports of Trimming Stake in Yes Bank on Lock-in End

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