Japanese company SMBC, purchasing 20% ​​stake in Yes Bank: Deal was done for ₹ 13,483 crore; SBI will sell its 13.19% share for ₹ 8,889 crore

7 banks like Axis Bank, Kotak Mahindra, ICICI and HDFC will also sell their 6.81% stake in Yes Bank.

Japanese company Sumitomo Mitsui Banking Corporation (SMBC) has announced to buy a 20% stake in the private sector bank of India. The deal has been done at Rs 13,483 crore with a price of ₹ 21.5 per share. In this deal, SBI will sell its 13.19% stake, which is value of Rs 8,889 crore.

The remaining 6.81% stake will be purchased from 7 banks like Axis Bank, Kotak Mahindra, ICICI and HDFC for Rs 4,594 crore. Yes Bank gave information about this in exchange filing on Friday. After the news of the deal, Yes Bank shares climbed 10% to close at ₹ 20.05.

Deal will be completed after the approval of the Reserve Bank

The deal will be completed after the approval of regulators like RBI and CCI. SMBC President Akihiro Fukutome said that India is a priority for us. This investment with Yes Bank is part of our long -term strategy. At the same time, CEO Prashant Kumar of Yes Bank said that the investment of SMBC will give new pace to our growth. SBI will still be our important partner.

Yes Bank shares up 10% today

Due to the news of the deal, there was a big jump in the stock of Yes Bank on Friday. The stock shut down by 10% with a 10% rupee of Rs 20.05. Hua company shares have given a return of 16.84% in 1 month. The stock has climbed 13.79% in the last 5 days. Yes Bank’s market share is more than 62 thousand crore rupees.

There was talk to buy stake in 2023 too

Earlier in 2023, SMBC wanted 51% of voting rights at Yes Bank, but due to Indian law (26% voting cap), the deal could not be done.

This time the SMBC has accepted the range of 26% voting rights, but the company wants to control the management by nominating its directors in the board of YES Bank.

Yes Bank’s 1,200+ branches in more than 710 countries

Yes Bank, banking and financial survival provides. The bank has 1,200+ branches, 1300+ ATMs and 8.2 million customers in more than 710 countries. Yes Bank founder is Rana Kapoor. He established this bank in 2004. The bank’s managing director and Chief Executive Officer (CEO) is Prashant Kumar.