SMBC to become largest shareholder in YES Bank with $1.57bn investment
From Yahoo Finance: 2025-05-12 07:29:00
Sumitomo Mitsui Banking Corporation (SMBC) will acquire a 20% stake in YES Bank, becoming the largest shareholder in the Indian private sector lender with a $1.57bn investment subject to regulatory approvals.
The deal involves purchasing a 13.19% stake from State Bank of India and a 6.81% stake from other bank shareholders, positioning SMBC as a key player in the Indian banking sector.
YES Bank, the sixth-largest private sector commercial bank in India, will benefit from SMBC’s global expertise and high governance standards, marking a significant step in its growth journey.
Financial advice for YES Bank came from Citigroup Global Markets, while SMBC received guidance from J.P. Morgan and Jefferies in this landmark cross-border investment in the Indian banking space.
In a separate move, the Indian government initiated the process to reduce its stake in certain public-sector banks and listed public financial institutions as part of financial sector reforms earlier this year.