Bay Tree India Holdings, a Private Equity firm, has pared a 2.1% holding in Yes Bank, cutting its stake in the private lender by almost 33%. The PE firm after several sales in the open market, during the period from January 6 to May 6, now has a holding of 5.4% in the lender.
Bay Tree cut its stake in the embattled lender that was the center of India's largest financial bailout last year, it said in a statement on Tuesday. In the $2 billion equity mop up last year by Yes Bank, Bay Tree was the top anchor investor, paying Rs. 22 billion for about 55% of the investor portion. Currently Bay Tree is the second-largest single shareholder in Yes Bank after SBI.
In March 2020, Yes Bank was on the brink of closure owing to weak corporate governance, declining capital and deposits as well as record NPAs, which forced the RBI to ask a group of lenders to infuse capital and rescue the bank. Since that time, the bank has been gearing to raise its deposits and cut on lending to companies.
Notably now also the bank's NPA stand high and the raging second coronavirus wave is adding to the pain of the bank.
Shares of Yes Bank traded with gains of over 1.53% at Rs. 13.30.