Yes Bank, the private lender is in talks with three top technology companies, including Microsoft Corp., to induct one of them as a strategic shareholder as part of the bank’s strategy to get a fresh capital infusion and augment its digital ambitions, Livemint reported.
If the talks, which began three weeks ago, are productive, Yes Bank could sell as much as 15 per cent through fresh equity issuance, the people said on condition of anonymity.
The stake sale may fetch the bank around Rs 2,000 crore but, more importantly, such a deal may help the bank work on its digital banking and payment system plans. Microsoft is one of the three global tech firms Yes Bank has held talks with. Yes Bank has appointed investment bankers as well to shortlist the global tech firm. The strategic partner may be allotted a board seat in the bank and RBI is aware of the bank’s plans.
On Thursday, media reports quoted Ravneet Gill, managing director and CEO of Yes Bank, as saying that the bank is very close to getting capital from a technology company.
Yes Bank is in firefighting mode after witnessing steep erosion in its market value since last year. The lender’s stock has nosedived from Rs 404 in August last year to Rs 42.15 now.
Inducting a global tech firm such as Microsoft as a strategic partner may not be simple for Yes Bank as it will require regulatory approvals.
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