Yes Bank: The stakes for the private sector Yes Bank have intensified. A giant Japanese bank has joined the race to control Yes Bank. Akihiro Fukutome, the chief of Japan’s largest Bank, SMBC, is coming to India for the first time this week. During this time, he can also make a big announcement about Yes Bank and meet officials of the Reserve Bank of India (RBI) and State Bank of India (SBI).
SMBC Has Set A Valuation Of $5 Billion
Akihiro Fukutome took over as the global CEO of Sumitomo Mitsui Banking Corporation last year. Quoting sources, Mint has said in a report that talks will also be held regarding Yes Bank during the meeting with RBI and SBI officials. Sources claim that SMBC has put a valuation of $5 billion for a 51 percent stake in Yes Bank. The Japanese Bank has also asked for details from Yes Bank.
SBI Has A 23.99 Percent Stake In Yes Bank
The country’s largest Bank, SBI, has a 23.99 percent stake in Yes Bank. In 2020, SBI bought a 49 percent stake in it to save the sinking Yes Bank. Now, SBI wants to sell its remaining stake as well. In July, RBI approved the sale of a 51 percent stake in Yes Bank. This was a unique decision because RBI has imposed a limit of 26 percent on the promoter’s stake in domestic banks.
Mizuho Bank Of Japan and UAE’s NBD Also Involved
SMBC has appointed JP Morgan as its financial advisor and J Sagar as its legal advisor for this acquisition. These people have also suggested that SMBC discuss this directly with the Reserve Bank and SBI. Japan’s Mizuho Bank and UAE’s NBD are also racing to buy Yes Bank. Mizuho Bank wants to buy a 20—to 24-percent stake. Apart from SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and LIC are big shareholders in Yes Bank.
