Foreign banks eye stake in Yes Bank

Two leading foreign banks have evinced an interest in picking up to 4.9% stake in Yes Bank. A tie-up would help Yes Bank add muscle to its trade-finance and cross-border transaction capabilities besides enhancing its global distribution reach, Rana Kapoor Chairman Yes Bank said.He, however, declined to divulge the names of the two foreign banks but said that "only American and European banks interest us presently." He denied reports that HSBC and Standard Chartered Bank had indicated any interest in Yes Bank.

Categorically ruling out ceding management control to any outside entity, Kapoor said that under no condition would the promoters' holding be allowed to drop below 30%. Presently, it stands at 34%.

The bank already has foreign holding with marquee investors holding stakes. While Netherlands-based RaboBank holds an 18% stake, Global Orient of Singapore holds 4.99%. Swiss Re holds 3.4%.