Rabobank, the Netherlands based bank finally sold off its 11% stake in Yes Bank for an amount worth around Rs 980 crore.

The bank now holds 4.9% stake in the private sector lender as compared to its earlier holding of 15.9%. It had to lower down its stake so as to abide by the regulatory norms to set up its own commercial bank in India.

RBI norms mandate that an existent foreign bank cannot hold more than 5% stake in a domestic private bank.

The bank has sold its stake at Rs 263 per share. Rabobank has sold 3.73 crore shares of the private sector bank to institutional investors including Life Insurance Corporation of India (62.50 lakh shares), Birla Mutual Fund and DSP Merrill Lynch Mutual Fund (50 lakh shares each), and Citigroup Global Markets Mauritius Pvt Ltd (30.65 lakh shares).

After this stake sale, Mr Sipko Schat, member of the executive board of Rabobank, will no longer be a part of the board of YES Bank.

"We remain confident about the future prospects of YES Bank and are retaining a 4.9 per cent stake in the bank," said Mr Schat.