Mumbai, March 14 -- Private sector lender Yes Bank Ltd is looking for a new promoter to sell up to 51% stake, and has hired Citigroup's India unit to find a buyer, two people aware of the development said. The bank has also invited some Indian lenders, including some of its existing shareholders, to join as promoter.

Yes Bank, India's sixth largest private lender by assets, is seeking a valuation of $8-9 billion, which would be 20-25% above its current market capitalization of $7.2 billion, the people said on condition of anonymity.

"Some banks and financial institutions in Japan, West Asia and Europe have been approached with an offer to sell at least 51% in Yes Bank. The discussions are at an early stage," the first person said. The s...