‘SMBC could pick up to 25 per cent stake in YES Bank, triggering an open offer’
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AINNIE ARIF
Mumbai
Japanese conglomerate Sumitomo Mitsui Banking Corp (SMBC) is in advanced talks to acquire majority 51 per cent stake in YES Bank, sources told businessline.
“The talks are on between SMBC and YES Bank for acquiring majority stake in the latter. SMBC could pick up to 25 per cent stake in YES Bank, triggering an open offer. The valuation is not yet finalised, but the RBI would cap the voting rights of SMBC at 26 per cent in YES Bank,” a source said.
Earlier, MUFG Bank was also in talks with SBI to buy the latter’s stake in YES Bank, a deal that would value the private lender in the region of $6.5-7 billion.
State Bank of India (SBI) could offload its entire 24 per cent stake in YES Bank, sources say, while other lenders with less than 3 per cent stake and Life Insurance Corporation of India can also exit YES Bank. Shares of YES Bank rose up to 10 per cent in intra-day trading, before ending 1 per cent higher at ₹17.94 apiece on the BSE. SMBC, YES Bank and SBI did not immediately respond to businessline queries.
Responding to reports of SMBC buying majority stake in YES Bank said it is on a “growth trajectory” and routinely explores opportunities with various stakeholders, which are aimed at enhancing shareholder value.
“However, such discussions are preliminary and do not warrant a disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, at this stage. The information pertaining to these discussions as set out in the article is speculative at this time and are not factually correct,” it said.
Rescue act
SBI in 2020 invested ₹6,050 crore to acquire 49 per cent stake in Yes Bank, as part of a rescue plan for the troubled lender. However, its shareholding fell after private equity firms Carlyle and Advent invested in the bank in 2022.
According to the YES Bank resolution plan in 2020, HDFC Ltd and ICICI Bank invested ₹1,000 crore each, Axis Bank invested ₹600 crore, Kotak Mahindra Bank ₹500 crore, Bandhan Bank & Federal Bank ₹300 crore each, and IDFC First Bank ₹250 crore in the bank.
Published on May 6, 2025
