Yes Bank is looking for a new owner
A big news has emerged regarding the private sector Yes Bank. The manoeuvring regarding the participation of private sector banks has intensified. Now, a leading Japanese bank has also joined this race. In fact, the Japanese bank has shown interest in buying shares in Yes Bank, for which now Akihiro Fukutome, Global CEO of Sumitomo Mitsui Banking Corporation i.e. SMBC, may arrive in India this week and may meet top officials of the RBI to hammer out a deal.
According to a Mint report, SMBC CEO will also meet officials from RBI and SBI during his visit to India. According to sources, SMBC has already started the process to buy a stake in Yes Bank and now the global CEO will meet senior officials from RBI and SBI on the stake sale plan.
The market capitalization is Rs 76,531 crore.
Sources say SMBC has set a valuation of $5 billion to buy a 51 per cent stake in Yes Bank. SBMC has also sought details from Yes Bank. At the time of market close on Monday (August 12), Yes Bank’s market capitalisation had touched $9.1 billion (Rs 76,531 crore).
SBI holds 23.99 percent stake in Yes Bank. To save Yes Bank in 2020, SBI bought 49 percent stake. SBI may sell part of its stake.
Yes Bank 51% sale approved
In July, the Reserve Bank of India approved the sale of 51 per cent stake in Yes Bank. This is the second such instance where the central bank allows an investor to hold more than 26 per cent stake in an Indian bank. In 2018, the RBI had given permission to Canada’s Fairfax Holdings Limited to acquire a 51 per cent stake in Kerala-based Catholic Syria Bank. SBMC has appointed JP Morgan as financial advisor and J Sagar Associates as legal advisor for the stake sale plan.
