The State Bank of India (SBI) plans to finalize a deal by the end of March to sell its 24% stake in Yes Bank, valued at 184.2 billion rupees ($2.2 billion), according to four sources with direct knowledge.

Furthermore, sources reveal that Sumitomo Mitsui Banking Corp, a Japanese lender, and Dubai-based Emirates NBD are in advanced talks to acquire a majority stake in Yes Bank. Sumitomo Mitsui is affiliated with Sumitomo Mitsui Financial Group, Japan’s second-largest bank.

It is important to note that the RBI restructured Yes Bank in March 2020 with the help of a consortium of local banks due to its worsening financial condition. However, according to one source, SBI has received verbal approval from the RBI to sell its entire stake in Yes Bank and expects to earn a profit of around 100 billion rupees.

“Both the bidders are interested in acquiring a majority 51% stake in Yes Bank to get sizeable control of the bank’s business,” one of the sources said. “The Reserve Bank of India (RBI) has verbally okayed the proposal and due diligence is on.”

SBI currently owns about 24% of Yes Bank, while 11 other lenders, including ICICI Bank and HDFC Bank, who were also part of Yes Bank’s rescue, collectively hold 9.74%.

“Bidders are seeking relaxation on the regulatory requirement that promoter shareholding be brought down to 26% within 15 years of the investment, and talks are on,” said one of the sources, referring to the stake by controlling shareholders.

Notably, SBI clearly stated that there has been no progress in this matter. (With Inputs From Reuters)