Japan's Sumitomo Mitsui Banking Corporation (SMBC) has become Yes Bank’s largest shareholder after formally completing acquisition of a 20 per cent stake in it.
The Japanese bank bought the stake from state-owned State Bank of India (SBI), India’s largest public-sector lender, as well as other bank investors, the private sector lender announced on Thursday. The SBI continues to hold a significant stake of over 10 per cent.
The milestone cross-border investment of a foreign bank in an Indian private sector bank included the appointment of two SMBC nominee directors to Yes Bank’s board, a move that is expected to enhance governance and foster deeper strategic collaboration between the two entities.
In a stock exchange filing, Yes Bank stated that Shinichiro Nishino and Rajeev Veeravalli Kannan have been inducted onto the bank's board.
Also Read: India's largest cross-border banking deal takes shape
It also said it intented 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.
"The completion of this transaction is a defining moment for Yes Bank. We are privileged to welcome SMBC as our largest shareholder and Board participant," said Prashant Kumar, Managing Director and Chief Executive Officer, Yes Bank.
"With the combined sponsorship of SMBC, backed by SMFG’s global scale, and SBI, India's most trusted bank, Yes Bank is uniquely positioned to grow stronger, expand Japan-India business flows, and deliver long-term value for all stakeholders," he added.
The bank also revealed it had been assigned AA- ratings, which is the highest level since March 2020, by four domestic credit rating agencies including CRISIL, ICRA, India Ratings, and CARE.
On Wednesday, SBI announced the completion of the divestment of about 13.18 per cent stake in Yes Bank to Sumitomo Mitsui Banking Corporation of Japan for ₹8,888.97 crore.
Follow us
