By Admin 
A big turn for Yes Bank is going to come, the bank’s CEO Prashant Kumar has revealed that Japan’s famous Sumitomo Mitsui Banking Corporation (SMBC) is now going to buy 20 per cent stake in the bank and the deal will be completed by the second quarter of 2025-26.
What did Yes Bank say?
Yes Bank’s managing director and CEO, Prashant Kumar said in a conversation with CNBC-TV18, “There was a kind of pressure on the bank till now. We needed a strong strategic partner. This deal with SMBC is a big step in our transformation journey.”
Who is selling stake?
The deal will buy YES Bank stake from SMBC, SBI and 7 other big banks, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.
Deal value?
The value of this deal will be around 13,483 crore. It is being called the largest foreign investment deal ever in the Indian banking sector. But the deal is yet to be approved by RBI and CCI. But if all goes well, then it can prove to be a gamechanger for Yes Bank.
What will happen next?
Prashant Kumar says, “This investment of SMBC is a sign of trust on our strength. With this we will be able to move fast in the second phase of our transformation.” He also added that the vision of SMBC is long-term, that is, it is not just a money deal, but a strategic partnership.
Rating will improve, funding will increase
CEO said that this deal will improve the credit rating of the bank, which will also prevent big corporates and government institutions to work with the bank. He said, “Today many institutions work with only those banks who have a minimum rating. With the SMBC, we will be able to cross that blockage with partnership with SMBC.”
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