SMBC picks up additional 4.22% stake in Yes Bank

With this transaction, SMBC has become Yes Bank's largest shareholder, while SBI continues to hold a significant stake of over 10 percent.

Yes Bank on Tuesday said Sumitomo Mitsui Banking Corporation (SMBC) of Japan has acquired an additional 4.22 percent stake in the Mumbai-based bank.

With the acquisition, SMBC's stake in Yes Bank has increased from 20 percent to 24.22 percent.

SMBC acquired 132.39 crore shares via off-market sale on September 22, Yes Bank said in a regulatory filing.

With the acquisition, the total holding of the Japanese entity in the bank rose to 759.51 crore shares, it said.

With this transaction, SMBC has become Yes Bank's largest shareholder, while SBI continues to hold a significant stake of over 10 percent.

The private sector bank stated its intention to leverage SMBC's global strengths, particularly in facilitating trade and investment flows between Japan and India, to accelerate growth in its corporate banking, treasury services, and cross-border solutions.

Also, Yes Bank said that four domestic credit rating agencies -- CRISIL, ICRA, India Ratings, and CARE -- have now assigned it AA- ratings, the highest level since March 2020. These upgrades reflect the bank's strengthened capital position, robust governance, and improved business performance.

Last week, the country's largest lender, SBI, announced the completion of the divestment of about 13.18 per cent stake in Yes Bank to Sumitomo Mitsui Banking Corporation (SMBC) of Japan for Rs 8,888.97 crore.

SMBC has reached an agreement with CA Basque Investments, an affiliate of the global investment firm Carlyle Group, to increase its equity stake in Yes Bank by an additional 4.22 per cent.

SBI and the seven investor lenders had invested in the bank as part of the Yes Bank reconstruction scheme in March 2020. The state-owned SBI, which held a 24 per cent stake in Yes Bank, is now left with a little over 10 per cent stake after the dilution.

In March 2020, weeks before the onset of the Covid crisis, the RBI and the government staged a rescue act which saw banks led by SBI taking a 79 per cent stake in Yes Bank and helping it stay afloat.