Yes bank: Yes Bank said on Saturday that the Reserve Bank of India (RBI) has approved the proposal to purchase a share of up to 24.99 % of Japan’s bank Sumitomo Mitsui Banking Corporation.

Citing the information given in the stock exchange on 9 May, Yes Bank said that the SMBC has proposed to buy 20 percent stake in the bank through the second market. These include 13.19 percent and seven other shareholders from State Bank of India – Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank to procure 6.81 percent joint stake. After the acquisition, SBI’s stake in Yes Bank will be 10.2 percent.

How long will the approval remain valid?

Yes Bank has said that this approval will remain valid for up to one year from August 22, 2025. The Reserve Bank has also said that after this acquisition, SMBC will not be considered a promoter of the bank.

The SMBC Sumitomo is a fully owned subsidiary of the Sumitomo Mitsui Financial Group (SMFG), which is the second largest in Japan and the 14th largest banking group in the world. Its net worth is around $ 2 trillion US $.

It provides services related to banking, leasing, securities, consumer finance and credit cards. Sources who have been aware of the case had told the Reuters last month that the SMBC is also seeking approval to purchase an additional 4.9 percent stake in Yes Bank.

Yes Bank shares

Yes Bank shares declined on Friday, the last trading day of the week. On this day, it was closing at the level of Rs 19.28 with a decline of 0.77 percent in BSE. In the last one year, the bank shares have declined by more than 21 percent. However, in the last 5 years, bank shares have also gained 23 percent lead. Its 52-Veek high level is Rs 24.84 and 52-wheel’s low level is Rs 16.02. The bank’s market cap is 60,480.60,480.45 rupees.

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Yes bank: Today, on Tuesday, there was a special movement in the shares of Yes Bank. In early trade, Yes Bank shares reached the National Stock Exchange (NSE) with a jump of 9.6 percent to Rs 19.44 per share. However, there was some decline in the afternoon business. The bank’s shares are trading at Rs 18.11 per share with some decline. Yes Bank shares closed at Rs 17.73 per share in the last business session.

Deal is being done with Japan company

In fact, Japan’s Sumitomo Mitsui Banking Corp (SMBC) is undergoing talks with the bank to buy 51 percent stake in YES Bank. If the matter is confirmed on the deal, it will probably be considered the biggest deal in India’s banking sector so far. Earlier in the year 2020, Lakshmi Vilas Bank, who was struggling with poor financial condition, was merged with DBS Bank in Singapore. After this, such a big deal has not yet been done in the banking sector of the country.

Screw is stuck on this thing

SMBC, the unit of Japan’s second largest bank Sumitomo Mitsui Financial Group, has been interacting with Yes Bank’s largest Investor State Bank and Reserve Bank, but the talk on ownership and voting rights is stuck. It is being told that SMBC has received approval from RBI to purchase 51 percent stake in Yes Bank. It is also being told that SMBC is also in talks with SBI to finalize this deal.

There will be a deal in this

According to the report, the deal can be valued at $ 1.7 billion (about Rs 14,000 crore). Sumitomo will either buy less than 26 % stake and will merge through the share swap or bring an open offer by purchasing 26 percent stake. This can provide the control of the bank to Sumitomo, which will be a big strategic change.

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