The Reserve Bank of India (RBI) has approved the sale of up to 51 percent stake in YES Bank, potentially ushering in new ownership for the private lender that faced a severe crisis just four years ago, sources cited by Mint said. The landmark decision could value India’s sixth-largest private bank by assets at around $10 billion, making it the biggest acquisition in the country’s banking sector.

According to the report, the RBI has given an interim green signal to YES Bank and its major shareholders despite the usual limit on promoters’ stake in domestic banks being set at 26 per cent.

“Some bidders are interested only if they are allowed to acquire 51 per cent of the bank. While assessing the suitability and eligibility criteria for the potential new promoter (of Yes Bank), the RBI has approved a sale of 51 per cent control to a suitable incoming promoter as a special case,” a source familiar with the matter said.

While RBI officials have verbally agreed to the sale proposal, formal written approval is still awaited as the central bank assesses the suitability of potential bidders.

With this decision, the central bank underlines its recognition of YES Bank’s unique situation, including its shareholder composition, loan portfolio and liquidity requirements.

YES Bank has engaged Citigroup to identify potential promoters. A Citigroup spokesman declined to comment on the matter.

State Bank of India (SBI) and other lenders, which collectively control 33.74 percent of YES Bank, now have an exit route thanks to the RBI’s approval. SBI itself holds 23.99 percent in YES Bank, while other banks and entities such as LIC, CA Basque Investments and Verventa Holdings hold significant stakes.

The RBI has also asked some of these banks not to sell their shares in the open market, the report said. The move will reshape the future of YES Bank and potentially the broader Indian banking sector as a new owner takes over.