Netherlands-based Rabobank is looking to sell its 10% stake in Indian private sector lender Yes Bank.
Rabobank, which is buying about 0.5% or a $200m stake in the initial public offering of Agricultural Bank of China, is raising around $215m from the sale of 37.3 million shares in Yes Bank to a group of domestic and foreign investors.
The Dutch banking major, which operates in India through Rabo India Finance, a non-banking financial company, held about 16% stake in Yes Bank as of March 2010. Rabobank may sell stake through open market operations, mainly block deals, to more than one investor.
Rabobank intends to exit Yes Bank as it is aiming to set up its own banking operations in India. As per Indian banking regulations, a foreign bank that holds a stake in a domestic bank cannot simultaneously have independent operations.
In an e-mailed statement Rabobank said: “Rabobank is keen to participate and contribute to India’s further growth. To this end, Rabobank is keen to establish its own banking presence in India and has sought the necessary regulatory approvals.”