Sumitomo Mitsui (NYSE: SMFG) to acquire 20% stake in Yes Bank

Sumitomo Mitsui (NYSE: SMFG) Banking Corporation (SMBC), a Japanese financial institution, has confirmed that it will buy a 20% share in Yes Bank (NSE: YESB), an Indian private lender. This acquisition marks the most significant cross-border merger and acquisition agreement in the financial sector of India.

SMBC will purchase a 13.19% stake from the State Bank of India (NSE: SBI), which is currently the largest investor in Yes Bank. The remaining 6.81% will be procured from a collection of banks, including Axis Bank (NSE: AXBK), Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank (NASDAQ: FRBA) Limited, and Kotak Mahindra Bank (NSE: KTKM). This information was disclosed by Yes Bank in a recent stock exchange filing.

SBI currently holds a 24% stake in Yes Bank, which was obtained because of a restructuring process led by regulators in March 2020. The new acquisition by SMBC will effectively reduce SBI’s stake in Yes Bank.