he Netherlands-based Rabobank may take up the wholly-owned route to launch banking operations in India. As a prelude to setting up its banking operations, the Dutch lender on Monday sold 3.73 crore shares in YES Bank, which works out to a 11% stake, paring its total shareholding to 4.9%.

The shares were sold in a series of bulk deals at an average price of Rs 263 per share, amounting to over Rs 1,000 crore. According to sources, the buyers included Life Insurance Corporation of India, SBI Life, Templeton and Carmignac—a French fund. A Rabobank spokesperson did not respond to emailed queries. Rabobank has been showing interest in settingup its own banking business in India for quite some time now. In a statement issued here on Tuesday, the bank said it has reduced its stake in YES Bank from around 15.9% to 4.9%. 

Rabobank was one of the initial investors in YES Bank, founded in 2004, in which Rana Kapoor and Ashok Kapoor were the Indian partners. 

“Rabobank, as part of its overall business plan for India, is obliged under the regulations to reduce its shareholding in YES Bank pending approval of its application for a full banking licence in India,” the statement said. 

According to YES Bank chief executive Rana Kapoor, the move augurs well for existing and future shareholders as the bank shares will now have a greater volume and momentum due to the diversified base. The YES Bank scrip settled 3.51% down after the stake sale by Rabobank. The counter closed at Rs 271.80 on the Bombay Stock Exchange after plunging 6.63% earlier in the day. 

Rabobank in India for 12 years 

Rabobank has been present in India for over 12 years and currently has a wholly-owned non-banking finance subsidiary—Rabo India Finance—and a minority stake in YES Bank. The Dutch lender’s international strategy is to focus on major growth markets which have a strong food and agricultural base. 

“Rabobank is keen to participate and contribute to India’s further growth in these and other sustainable sectors, including renewable energy and clean technology. To this end, Rabobank is keen to establish its own banking presence in India and has sought the necessary regulatory approvals,” the statement said. 

Sipko Schat, member of the executive board of Rabobank, said: “We are a strong supporter of YES Bank and its entrepreneurial management team, who have successfully established the bank as one of India’s most successful and fastest growing full-service providers. We remain confident in the future prospects of YES Bank and are retaining a 4.9% stake in the bank.” In line with the reduction in their shareholding, Sipko Schat will step down from the board of YES Bank.