Yes Bank has announced that the Reserve Bank of India (RBI) has granted approval to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to purchase up to 24.99 per cent of the bank’s paid-up share capital and voting rights.
The move follows Yes Bank’s earlier disclosure on May 9 regarding SMBC’s plan to acquire a significant holding in the lender through a secondary stake buy.
The proposed deal involves purchasing 13.19 per cent from the State Bank of India and 6.81 per cent collectively from Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.
In its filing, Yes Bank confirmed that the RBI’s letter of approval is valid for one year. The central bank has also clarified that SMBC will not be classified as a promoter of Yes Bank after the acquisition is completed.
The regulator’s clearance comes with conditions, including adherence to the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies, provisions under the Foreign Exchange Management Act, 1999, and other relevant regulations.
Yes Bank further noted that lock-in requirements, oversight on subsequent transactions, and RBI’s decision-making authority will continue to remain in force.
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