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- SMBC Rules Out Raising Yes Bank Stake Beyond 24.99%, Yes Bank Shares Fall 4%
New Delhi53 minutes ago
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Japanese banking company Sumitomo Mitsui Banking Corporation (SMBC) has refused to buy more stake in Yes Bank. An SMBC official said on Friday that SMBC currently has no intention of increasing its stake in Yes Bank beyond the prescribed limit of 24.99%.
Due to this news, Yes Bank shares have fallen by 4%. Actually, earlier it was expected that a big company like SMBC would soon increase its stake in Yes Bank and acquire controlling stake. SMBC currently holds 24.2% stake in Yes Bank.
Yes Bank shares fell 8% in 5 days
Yes Bank shares are trading at Rs 22.19 with a decline of 4% on Friday. The bank’s shares have risen 5% in the last one month and 22% in the last six months. The bank’s shares have shown a rise of 6% in one year. Its market cap is Rs 69.45 thousand crore.
SMBC had bought 20% stake in Yes Bank
Earlier, in May, SMBC had bought 20% stake in Yes Bank for Rs 13,483 crore. This was one of the largest deals of any foreign investment in the Indian banking sector.
Of this 20% stake, more than 13% was owned by SBI, while the remaining 7% was owned by other Indian banks like Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.
These banks had bought stake in 2020 at a price of Rs 10 per share under the government-led Yes Bank reconstruction plan.
Sumitomo Mitsui Banking Corporation is a Japanese multinational banking financial services institution. Which is owned by Sumitomo Mitsui Financial Group.
RBI had given approval to SMBC to increase stake in Yes Bank to 24.99%.
RBI had allowed SMBC to increase its stake in Yes Bank to 24.99%. After this, SMBC bought 4% stake from private equity investors Advent and Carlyle. However, RBI had said that after purchasing the stake, SMBC will not be considered the promoter of the bank.
Yes Bank has 1,200+ branches in more than 710 countries.
Yes Bank provides banking and financial services. The bank has 1,200+ branches, 1300+ ATMs and 8.2 million i.e. more than 82 lakh 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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