Disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
Awaiting price reaction for this filing.
Yes Bank's board has approved share purchase agreements under which Japan's Sumitomo Mitsui Banking Corporation (SMBC) will acquire a 20% stake (approximately 627 crore shares) in the bank. SMBC will buy 13.19% from State Bank of India (SBI) and 6.81% in aggregate from seven other Indian banks — HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank. After the deal, SMBC becomes Yes Bank's largest shareholder while SBI retains over 10%. The transaction is the largest cross-border investment in Indian banking and is subject to RBI and CCI approvals. SMBC will get the right to nominate 2 non-executive directors, while SBI keeps the right to nominate 1 director.
A major global banking group entering as the largest shareholder is a strong vote of confidence and could support the stock on approval-related news; however, the deal is pending regulatory clearances from RBI and CCI, so execution risk remains. SBI reducing its stake below its previous ~24% level may change the perception of government-backed support.