SBI Yes Bank Stake Sell 20%

SBI Yes Bank Stake Sell, SMBC Acquisition Report 51%

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SBI Yes Bank Stake Sell: Japanese company Sumitomo Mitsui Banking Corporation (SMBC) is planning to buy a large stake in India’s private sector bank, Yes Bank. For this, SMBC has started talks with the State Bank of India (SBI).

SBI Yes Bank Stake Sell 20%
SBI Yes Bank Stake Sell 20%

SBI Yes Bank Stake Sell 20%

SBI has a 23.97% stake in Yes Bank, out of which it can sell a 20% stake to SMBC. Along with this, SMBC can buy another 6-7% stake from other shareholders of Yes Bank. After this, SMBC will start the process of an open offer to acquire a 51% stake in Yes Bank. If this deal happens, then it will be one of the biggest acquisitions in the Indian banking sector.

Other Shareholders Can Also Sell Their Stake

Other investors of Yes Bank, like Axis Bank, Kotak Mahindra, ICICI and HDFC Bank, can also sell their stake. These banks have a total of 7.36% shares of Yes Bank. Apart from this, Advent and Carlyle (9.2% and 6.84% shares) can also sell their shares through an open offer. Government company LIC has 3.98% shares in Yes Bank, which can play an important role in the deal.

SBI Yes Bank Stake Sell: Yes Bank’s Stock Rose 10% Today

Due to the news of the deal, a big jump was seen in Yes Bank’s stock on Tuesday. The stock rose 10% to make a day high of Rs 19.44. However, the stock closed at Rs 18 with a rise of 1.41%. The company’s stock has given a return of 7% in 1 month.

Approval from RBI Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received approval from the Reserve Bank of India (RBI) to buy a 51 per cent stake in private lender Yes Bank. The deal could value the private lender at $1.7 billion.

There were talks of buying a stake in 2023 as well. Earlier in 2023, SMBC wanted 51% voting rights in Yes Bank, but due to Indian law (26% voting cap), the deal could not happen. This time, SMBC has accepted the limit of 26% voting rights, but the company wants control over the management by nominating its directors to the board of Yes Bank.

Yes Bank Highlights

  • Yes Bank provides banking and financial services.
  • The bank has 1,200+ branches, 1300+ ATMS and more than 8.2 million customers in more than 710 countries.
  • The founder of Yes Bank is Rana Kapoor.
  • He established this bank in 2004.
  • The Managing Director and Chief Executive Officer (CEO) of the bank is Prashant Kumar.

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