SMBC Group CEO Toru Nakashima recently addressed employees of Yes Bank during a town hall meeting, assuring them of job security following the Japanese conglomerate's acquisition of stake in the Indian lender, the Economics Times reported, citing people familiar with the matter.
This comes amid staff's concerns over potential layoffs at the bank in case the incoming management focused on cutting costs, the report added.
'SMBC to take Yes Bank to the next level of growth':
During the townhall meeting held on October 17 at the private lender's Mumbai headquarters, Nakashima said that SMBC would take Yes Bank to the next level of growth by bringing its own global learning and expertise, the report further said.
After the townhall meeting, Toru Nakashima and the top management of Yes Bank met senior officials from the Reserve Bank of India (RBI), ET reported.
Moneycontrol couldn't independently verify the report.
SMBC's acquisition of stake in Yes Bank:
In August, SMBC received RBI's approval to buy up to 24.99 percent stake in Yes bank from State Bank of India (SBI) and seven other shareholders after having inked a deal in May to purchase a 20 percent stake for $1.6 billion. This marked India's largest cross-border financial sector merger and acquisition.
SMBC not to take an executive role in Yes Bank:
Earlier this month, Rajeev Kannan, group executive officer and head of SMBC Group's India division, told Reuters that the bank is focused on contributing to Yes Bank's board as its largest shareholder and does not intend to take an executive role in the lender.
"We are not actively looking at increasing our stake in Yes Bank beyond the regulatory permissible limit of 24.99%," Kannan said. "There are many areas which Yes Bank still needs to work on, and we need to ensure that those areas, which they have a plan to address, are being executed."
Yes Bank share price:
Yes Bank shares were trading 0.75 percent higher at Rs 22.84 apiece, as see at 11.50 am. The stock has gained nearly 9 percent in the past one month, and more than 26 percent in the past six months. The shares of the company are up around 16 percent in 2025 so far.
The stock’s P/E ratio currently stands at 25.96.
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