MUFG and SMBC, two Japanese lenders, have reportedly backed out of their interest in acquiring a majority stake in Yes Bank.
The discussions regarding the sale of State Bank of India's 24 percent stake have come to a standstill since September, indicating a significant impasse.
The potential deal has faced challenges, particularly related to control issues between the prospective buyers and Indian regulators. The current regulations limit a promoter's voting rights in a bank to 26 percent, which means that even if MUFG and SMBC were to secure a 51 percent stake, their voting power would be restricted, further complicating the transaction.