Sumitomo Mitsui Banking Corporation (SMBC), a big bank from Japan, has bought a 20% share in Yes Bank, an Indian private bank. SMBC bought these shares from State Bank of India (SBI) and seven other private banks that previously owned parts of Yes Bank. These banks had earlier invested in Yes Bank back in March 2020, when Yes Bank was in financial trouble and needed help.
SMBC is now the biggest shareholder in Yes Bank. SMBC has paid Rs 13,482 crore (about 135.82 billion rupees) to buy that 20% stake. Because SMBC now owns a big part of Yes Bank, it has chosen two people to join Yes Bank’s board of directors:
- Shinichiro Nishino – A senior executive at SMBC who works in risk management.
- Rajeev Veeravalli Kannan – He heads SMBC’s operations in India.
However these appointments need to be approved by the shareholders first. SBI still owns more than 10% of the bank, so it’s still a major investor, but no longer the biggest. Sandeep Tewari, who was on the board as a representative of SBI, has resigned.
Since SMBC owns the biggest share, it now has more say in how Yes Bank is managed and what direction it takes in the future. After SMBC bought the shares, four major credit rating agencies in India upgraded Yes Bank’s rating to AA-. This is a positive sign, showing that these agencies now think Yes Bank is more financially stable and trustworthy.
Also Read: SMFG Plans $1.1 Billion Investment in Yes Bank, Boosting Stake Further
SMBC (Japanese Financial Giant) in Advanced Discussions to Acquire Significant Stake in Yes Bank.
RBI Clears SMBC’s Entry into Yes Bank Board with Approval for Two Director Appointments