Japan's SMBC becomes Yes Bank's largest shareholder, raising its stake by another 4.22%; stocks in focus.

Yes Bank: SMBC acquired 132.39 crore shares of the bank through an off-market sale on September 22. With this transaction, SMBC's total holdings in the bank have increased to 759.51 crore shares.

Yes Bank: Japan's Sumitomo Mitsui Banking Corporation (SMBC) now holds the largest stake in Yes Bank. Yes Bank announced on Tuesday that SMBC has acquired an additional 4.22% stake in the bank. With this, SMBC's stake in Yes Bank has increased from 20% to 24.22%.

Shares acquired through an off-market sale 

Yes Bank said in a regulatory filing that SMBC acquired 132.39 crore shares of the bank through an off-market sale on September 22. With this transaction, SMBC's holdings in the bank have increased to 759.51 crore shares. SMBC is now Yes Bank's largest shareholder. State Bank of India (SBI) continues to hold a significant stake of over 10%. At one point, SBI held a 24% stake in Yes Bank. 

 

With this, Yes Bank shares are expected to see movement during Wednesday's trading session. Yes Bank stated that SMBC has taken this step to facilitate investment between Japan and India, and to accelerate corporate banking, treasury services, and cross-border solutions. Furthermore, Yes Bank stated that four domestic credit rating agencies—CRISIL, ICRA, India Ratings, and CARE—have now assigned it an AA rating. 

SBI had announced that it would sell its stake in the bank. 

Last week, the country's largest bank, SBI, announced the sale of approximately 13.18% of its stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,888.97 crore. SMBC has entered into an agreement with CA Basque Investments, a subsidiary of global investment firm Carlyle Group, to increase its equity stake in Yes Bank by 4.22%. Shortly before the COVID-19 pandemic hit in March 2020, the RBI and the government jointly took necessary steps to keep Yes Bank afloat. Under this agreement, banks led by SBI acquired a 79% stake in Yes Bank, helping to keep it afloat.