Private sector lender Yes Bank Ltd has agreed to acquire 8% equity stake in Receivables Exchange of India Ltd (RXIL), according to a stock market disclosure.
Financial details of the transaction were not disclosed.
Yes Bank, India’s fifth-largest private-sector lender, has signed a share subscription and shareholders’ agreement wherein it agreed to subscribe for 20,000 equity shares, equivalent to 8% of the post-issue paid-up capital of RXIL, the filing said.
RXIL is a joint venture company set up by NSE Strategic Investment Corporation Limited and Small Industries Development Bank of India (SIDBI).
Along with two other entities—Axis Bank and Gurgaon-based Mynd Solutions—RXIL was recently granted in-principle approval by the Reserve Bank of India (RBI) for setting up the Trade Receivables Discounting System (TReDS). While seven entities had applied for it, four, including Trade Receivables Exchange and NSDL Database Management, did not make the cut.
In the March quarter, Yes Bank’s net profit rose 27.4% to Rs 702.11 crore on a 17.7% rise in total income to Rs 4331.11 crore, from the year-ago period.
Recently, it acquired a little over 5% stake in an investor advisory firm IiAS from BSE Ltd for an undisclosed amount.
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