NEW DELHI– Yes Bank on Saturday announced that the Reserve Bank of India (RBI) has approved Sumitomo Mitsui Banking Corporation’s (SMBC) plan to acquire a 24.99 per cent stake in the private lender.
The approval, granted on August 22, will remain valid for one year, Yes Bank said in a stock exchange filing. The RBI clarified, however, that SMBC will not be considered a promoter of the bank following the transaction.
The stake purchase was first disclosed on May 9, with SMBC set to acquire 20 per cent of Yes Bank through a secondary transaction. The deal included a 13.19 per cent sale by State Bank of India and a combined 6.81 per cent from seven other banks — Axis Bank, Federal Bank, Bandhan Bank, ICICI Bank, HDFC Bank, IDFC First Bank, and Kotak Mahindra Bank.
Yes Bank said the central bank’s nod is subject to conditions including compliance with the Banking Regulation Act, RBI’s guidelines on shareholding in banking companies, the Foreign Exchange Management Act, and other applicable laws. Any subsequent stake transactions will also be subject to RBI approval, as well as lock-in and regulatory conditions.
The bank noted that completion of the deal requires clearance from the Competition Commission of India (CCI) along with other customary approvals outlined in the May 9 agreements.
Meanwhile, Yes Bank shares closed at Rs 19.28 on Friday, down 0.77 per cent. The stock has slipped nearly 2 per cent over the past week, fallen more than 3 per cent in the past month, and is down over 20 per cent year-on-year. Year-to-date, the stock has remained largely flat. (Source: IANS)
