Sumitomo Mitsui Becomes Major Stakeholder in Yes Bank: Cross-Border Investment Landmark
Sumitomo Mitsui Banking Corporation (SMBC) acquires a 20% stake in Yes Bank, making it the largest shareholder. The deal marks the largest cross-border investment in an Indian private bank. Two SMBC directors join Yes Bank's board, promising improved governance and strategic collaboration, while domestic rating agencies upgrade Yes Bank's credit ratings.
- Country:
- India
In a landmark move, Sumitomo Mitsui Banking Corporation (SMBC) has acquired a 20% stake in Yes Bank, the bank announced on Thursday. This acquisition from State Bank of India (SBI) and other investors marks the largest cross-border investment in an Indian private sector bank.
Following the deal, SMBC has become Yes Bank's biggest shareholder, although SBI retains a significant holding of over 10%. Two SMBC nominee directors will now join Yes Bank's board, enhancing governance and fostering strategic collaboration between the two entities.
Yes Bank aims to leverage SMBC's strengths in global trade and investment flow to enhance growth in corporate banking and other services. The bank has also seen improved credit ratings from four domestic agencies, reflecting its strengthened capital and robust governance.
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