SMBC's board representation in Yes Bank to be proportionate to its stake

SMBC to gain 20 per cent stake in Yes Bank, becoming its largest shareholder with likely board representation; SBI's stake to reduce post regulatory approval

Following Japan-based Sumitomo Mitsui Banking Corporation’s (SMBC) proposed acquisition of a 20 per cent stake in Yes Bank -- subject to approval from the Reserve Bank of India (RBI) -- the Japanese lender is set to become the bank’s largest shareholder and is expected to gain board representation proportional to its shareholding, sources said.

 

While Yes Bank has not officially disclosed any changes to its board structure post-deal, sources indicated that SMBC is likely to have the highest representation on the board once the transaction is finalised.

 

Moreover, SBI will be free to cut down its stake in the private