Dutch bank Rabobank International Holding BV has plans to sell off its stake with private sector lender Yes Bank Ltd.. The bank holds 15.9% stake with Yes Bank.

Rabobank plans to make an exit from Yes Bank because it may be opening up its own branch in the country. The bank is a 110 year old food and agriculture bank, having a triple A rating. As per Indian banking regulations, a foreign bank which holds a stake in a domestic bank cannot simultaneously open up a branch in the country.

Rabobank currently has its operations in India routed through Rabo India Finance Ltd, a non-banking financial company (NBFC).

Initially it held 20% stake in Yes Bank which fell to 15.9%. Among the promoters, Kapoor now holds a 5.89% stake in the bank and Madhu Kapur, wife of the late Kapur, owns 10.34%.

RBI norms mandate that a single entity cannot hold more than 5% and a group more than 10% in a bank, it will not be possible for Rabobank to sell its entire stake to one entity alone.

Both banks have refrained themselves from commenting on the issue.