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In what could be the largest cross-border investment in the banking sector, Sumitomo Mitsui Banking Corporation (SMBC) of Japan has entered into an agreement to acquire 20 per cent stake in YES Bank through a secondary stake purchase valued at around Rs 13,483 crore.
SMBC has agreed to purchase 13.19 per cent stake from SBI at a cost of Rs 8,889 crore and 6.81 per cent from other bank shareholders including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank. While SMBC paid a price of Rs 21.50 per share, Yes Bank shares zoomed by 9.77 per cent to Rs 20 on the exchanges on Friday.
SBI and the seven investor banks had invested in Yes Bank as part of a Reconstruction Scheme approved by the Reserve Bank of India in March 2020. “This transaction is the largest cross-border investment in the Indian banking sector,” the bank said.
SBI will continue to hold more than 10 per cent stake in Yes Bank after the deal. The RBI had on March 5, 2020, put a moratorium on Yes Bank, which faced a financial crisis, restricting withdrawals to Rs 50,000 per depositor. It superseded the board of the troubled private sector lender and appointed Prashant Kumar as administrator.
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