Japan-based SMBC to not buy controlling stake in Yes Bank:This Japanese bank already holds 24% stake; Yes Bank share prices fall over 3% on BSE

Japanese banking company Sumitomo Mitsui Banking Corporation (SMBC) has declined to purchase additional stake in Yes Bank. An SMBC official said on Friday that SMBC currently has no intention to increase its stake beyond the fixed limit of 24.99% in Yes Bank. Due to this news, Yes Bank’s share fell by 3.37%. Earlier, media reports were claiming that a large company like SMBC would soon increase its stake in Yes Bank to acquire controlling stake (51% shareholding). SMBC currently holds 24.2% stake in Yes Bank. Yes Bank’s share fell 8% in 5 days Yes Bank’s share closed at ₹22.34 with a decline of 3.37% on Friday. The bank’s share has risen 5% in the past month, 22% in the last six months. While the bank’s share has shown a 6% increase in one year. Its market cap is ₹69,045 crore. SMBC purchased 20% stake in Yes Bank Earlier in May, SMBC bought a 20% stake in Yes Bank for ₹13,483 crore. This was one of the largest foreign investment deals in the Indian banking sector. Out of this 20% stake, more than 13% was held by SBI, while the remaining 7% was held by other Indian banks like Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank. These banks had purchased stakes at ₹10 per share under the government-led Yes Bank reconstruction plan in 2020. RBI approved SMBC’s proposal to increase stake in Yes Bank to 24.99% RBI had given permission to SMBC to increase its stake in Yes Bank to up to 24.99%. After this, SMBC purchased 4% stake from private equity investors Advent and Carlyle. However, RBI had said that after purchasing the stake, SMBC would not be considered as the bank’s promoter. Yes Bank has 1,200+ branches in more than 710 countries Yes Bank provides banking and financial services. The bank has 1,200+ branches in more than 710 countries, 1300+ ATMs and more than 8.2 million or 82 lakh customers. Yes Bank was founded by Rana Kapoor. He established this bank in 2004. The bank’s Managing Director and Chief Executive Officer (CEO) is Prashant Kumar.