There are major updates about Yes Bank. After getting approval to sell a 51% stake, efforts to buy into the bank have increased. Now, a leading bank is also in the race. The global CEO of this Japanese bank is expected to visit India this week to discuss buying a stake in Yes Bank.
The Japanese bank, Sumitomo Mitsui Banking Corporation (SMBC), has shown interest in buying a stake in Yes Bank. The global CEO, Akihiro Fukutome, is expected to meet with senior RBI officials during his visit to India to discuss the deal.
According to reports, during his visit, the CEO will also meet with officials from the RBI and SBI. Sources say that SMBC has already started the process to buy a stake in Yes Bank and is now discussing the sale plan with senior officials from the RBI and SBI.
SMBC has valued the 51% stake at $5 billion. They have also requested details from Yes Bank.
As of the market close on August 12, Yes Bank’s market cap reached $9.1 billion (₹76,531 crore).
SBI holds a 23.99% stake in Yes Bank. In 2020, SBI bought a 49% stake to rescue Yes Bank. SBI might sell some of its stake.
In July, the Reserve Bank of India approved the sale of a 51% stake in Yes Bank. This is the second time the central bank has allowed an investor to hold more than 26% in an Indian bank.
In 2018, RBI allowed Canada’s Fairfax Holdings Limited to buy a 51% stake in Kerala-based Catholic Syrian Bank. SMBC has appointed JPMorgan as the financial advisor and J. Sagar Associates as the legal advisor for the stake sale.
