SMBC becomes Yes Bank's largest shareholder, nominates two directors

Sumitomo Mitsui Banking Corporation has acquired a 20 per cent stake in Yes Bank from SBI and others, becoming its largest shareholder and nominating two board directors

Japan-based Sumitomo Mitsui Banking Corporation (SMBC) has become the largest shareholder of private sector lender Yes Bank after completing the acquisition of a 20 per cent stake through a secondary purchase of shares from State Bank of India (SBI) and other lenders that had participated in the bank’s reconstruction scheme in March 2020.

 

SBI will continue to be a major shareholder with over 10 per cent holding in the bank.

 

Following SMBC’s stake acquisition, Shinichiro Nishino and Rajeev Veeravalli Kannan, nominee directors of SMBC, joined the Yes Bank board as non-executive and non-independent directors with effect from September 18. Separately, Sandeep Tewari, nominee director of SBI, ceased to be a non-executive, non-independent director of the bank.

 

Nishino is Executive Officer and Head of Global Credit in the risk management unit of SMBC. Based in Tokyo, he oversees the bank’s global credit portfolio. Kannan is Managing Executive Officer and Head of the India Division at SMBC as well as at Sumitomo Mitsui Financial Group (SMFG). 

 

“With this shareholding structure, Yes Bank is uniquely poised to capitalise on its most transformative phase — backed by two of the most prominent institutions in global and Indian banking,” the bank said in a statement on Thursday, adding that the deal represents the largest cross-border investment in an Indian private sector bank.

 

“Yes Bank intends to leverage SMBC’s global strengths, particularly in facilitating Japan–India trade and investment flows, to accelerate growth in corporate banking, treasury services and cross-border solutions,” the bank added.

 

Prashant Kumar, Managing Director and Chief Executive Officer of Yes Bank, said: “The completion of this transaction is a defining moment for Yes Bank. With the combined sponsorship of SMBC, backed by SMFG’s global scale, and SBI, India’s most trusted bank, Yes Bank is uniquely positioned to grow stronger, expand Japan–India business flows, and deliver long-term value for all stakeholders.”

 

SBI and seven other private banks, which had invested in Yes Bank during its reconstruction phase in March 2020, collectively sold their 20 per cent stake to SMBC for Rs 13,482 crore.