Yes bank-smbc deal: A major investment has been seen in India’s private banking sector. Sumitomo Mitsui Banking Corp (SMBC), one of Japan’s largest financial institutions, has signed an agreement to purchase a 20 percent stake in Yes Bank.
The total value of this deal is Rs 13,483 crore (about 1.58 billion dollars). This investment has been made at the rate of Rs 21.5 per share. After this deal, the total assessment of Yes Bank has increased to Rs 67,411 crore.
This investment is considered by SMBC to the first step towards a dominated stake in Yes Bank. Under this deal, SMBC will also get the right to appoint two directors in the board of Yes Bank.
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SBI and seven other banks sold stake (Yes Bank-SMBC Deal)
Under this deal, State Bank of India (SBI) has sold 13.19% of its 24% stake to SMBC for Rs 8,889 crore. Along with this, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank and Bank together have sold their 6.81% stake to SMBC for Rs 4,594 crore.
These banks had invested at the rate of ₹ 10 per share to save Yes Bank in March 2020 on the instructions of RBI. Now after the revival of Yes Bank, these investors are coming out by earning profits.
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What did SMBC and Yes Bank say? (Yes Bank-SMBC Deal)
SMBC said in its statement, “India is an important market for us and we see long -term possibilities in its rapidly growing economy.,
Strong bounce in shares (Yes Bank-SMBC Deal)
After the news of the deal surfaced, Yes Bank’s stock rose by about 10% to close at ₹ 20 on Friday. This has given positive indications to investors.
Yes Bank’s highest level of 52 weeks was ₹ 52.44 and the minimum level is ₹ 16.02. This deal has increased both the expectations and enthusiasm of investors.
