Yes Bank plunges 7% on Rabobank stake sale reports

MUMBAI: Private sector lender Yes Bank today plunged nearly 7 per cent in morning trade on BSE amid reports that the Netherlands-based investor Rabobank is looking at selling its 10 per cent stake in the bank in order to set up its own banking operations in India. (Watch)

Shares of Yes Bank plummeted 6.63 per cent to touch a low of Rs 263 a piece on the Bombay Stock Exchange (BSE). The scrip fell to a low of Rs 262.80, down 6.69 per cent, on the National Stock Exchange.

According to the sources, Rabobank is planning to sell about 10 per cent of its stake in the bank through open market operations, mainly block deals, to more than one investor in the near future.

"The stock saw momentary reaction from investors in the market. The scrip follows the broader market Sensex which is trading under pressure," CNI Research CMD Kishore P Ostwal said.

A per March quarter shareholding available on BSE, Rabobank held 16 per cent stake in private sector lender.

Rabobank wants to exit Yes Bank and set up its own banking operations. As per Indian banking regulations, a foreign bank that holds a stake in a domestic bank cannot simultaneously have independent operations, the reports added.

The 30-share BSE index Sensex was trading 74.13 points, or 0.41 per cent, down at 17,802.42 points at 0920 hrs.