SMBC becomes YES Bank's largest shareholder with 20% stake, SBI continues to hold over 10% stake

Sumitomo Mitsui Banking Corporation ("SMBC") has successfully completed the acquisition of a 20% shareholding in YES Bank through a secondary purchase of shares from State Bank of India ("SBI") and other bank investors that participated in the Bank's March 2020 Reconstruction Scheme. The acquisition makes SMBC the largest shareholder in YES Bank, while SBI continues as a major shareholder with over 10% holding.

The completion of the transaction also saw the induction of two SMBC nominee directors onto YES Bank's Board, further strengthening governance and creating a platform for deeper strategic collaboration.

With this shareholding structure, YES Bank is uniquely poised to capitalise on its most transformative phase - backed by two of the most prominent institutions in global and Indian banking. SMBC, part of Sumitomo Mitsui Financial Group ("SMFG"), one of the world's leading financial institutions with a global balance sheet of ~ USD 2 Trillion, and SBI, India's largest bank epitomising trust and stability, together reinforce YES Bank's credibility, governance, and growth potential.

This milestone also represents the largest cross-border investment in Indian private sector bank. YES Bank intends to leverage SMBC's global strengths, particularly in facilitating Japan-India trade and investment flows, to accelerate growth in corporate banking, treasury services, and cross-border solutions.

YES Bank expresses its gratitude to the Ministry of Finance, Government of India, the Reserve Bank of India ("RBI") and SBI for their decisive leadership and guidance, as well as to the other bank investors for their timely capital participation in 2020 and ongoing support. The Bank also acknowledges the various regulatory authorities for their continued support that enabled smooth closure of this landmark transaction. Importantly, the Bank extends heartfelt appreciation to its employees who steered the organisation through a challenging period, including the Covid-19 crisis, and laid the foundation for rebuilding the franchise that is today ready to soar into its next growth phase.

This secondary acquisition follows another major milestone in YES Bank's journey - upgrades by all four domestic credit rating agencies. CRISIL, ICRA, India Ratings, and CARE have now assigned the Bank AA- ratings, the highest level since March 2020. These upgrades reflect YES Bank's strengthened capital position, robust governance, and improved business performance.

Mr. Prashant Kumar, Managing Director & Chief Executive Officer, YES Bank, said: "The completion of this transaction is a defining moment for YES Bank. We are privileged to welcome SMBC as our largest shareholder and Board participant. I would also like to express my deepest gratitude to the Ministry of Finance, Government of India, the RBI and SBI for their unwavering support and guidance, and to the other bank investors for their timely capital participation in 2020 and continued support. My heartfelt appreciation goes to our employees, who navigated through testing times, including the Covid-19 pandemic, and build the YES Bank of Today on the foundation of resilience and trust. With the combined sponsorship of SMBC, backed by SMFG's global scale, and SBI, India's most trusted bank, YES Bank is uniquely positioned to grow stronger, expand Japan-India business flows, and deliver long-term value for all stakeholders."

Shares of Yes Bank Limited was last trading in BSE at Rs. 21.15 as compared to the previous close of Rs. 21.00. The total number of shares traded during the day was 7091003 in over 77441 trades.

The stock hit an intraday high of Rs. 21.25 and intraday low of 20.88. The net turnover during the day was Rs. 148921154.00.

Source : Equity Bulls

Keywords

YesBank INE528G01035 SMBC SumitomoMitsuiBankingCorporation LargestShareholder SBI