Yes Bank: The country’s largest Bank, SBI, has decided to sell its stake in Yes Bank. State Bank of India hopes to get more than Rs 18 thousand crores by selling its 24 percent stake in Yes Bank. Two giant Japanese banks, SMBC, Mizuho Bank, and UAE’s NBD, are also involved in the race to buy Yes Bank. However, SMBC is more likely to win this race. The Bank’s CEO will come to India this week to hold talks with SBI and RBI officials.
SMBC CEO Is Coming To India Soon
According to the report, quoting sources, Akihiro Fukutome, Global CEO of Sumitomo Mitsui Banking Corporation, will soon come to India to discuss the purchase of Yes Bank. NBD is also serious about this deal. RBI and SBI have made up their minds about this deal. Soon, all the parties will decide on Yes Bank. After Yes Bank’s financial condition deteriorated, RBI took over with the help of SBI in March 2020.
Buyers Are Demanding Relaxation In Rules From RBI
SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and LIC are big shareholders in Yes Bank. SBI has a 24 percent stake, and all have a 9.74 percent stake. Two private equity firms have a 16 percent stake. However, all these banks interested in buying Yes Bank have demanded some relaxation in the rules from RBI.
SMBC Set A Valuation Of $5 Billion
A recent media report claimed that SMBC had set a valuation of $ 5 billion for a 51 percent stake in Yes Bank. The Japanese Bank has also asked for details from Yes Bank. To save the sinking of Yes Bank, SBI bought a 49 percent stake in the year 2020. SMBC has appointed JP Morgan as its financial advisor and J Sagar as its legal advisor for this acquisition.
