RBI clears SMBC's Yes Bank board representation
The Reserve Bank of India has approved changes to Yes Bank's rules, letting Japan's Sumitomo Mitsui Banking Corporation (SMBC) appoint two directors and State Bank of India (SBI) one director to the board.
This is a key step for SMBC as it gears up to buy a major stake in Yes Bank from SBI and other lenders.
SMBC to become largest shareholder in Yes Bank
SMBC is set to grab a 20% chunk of Yes Bank, with SBI selling most of its shares—dropping from 24% ownership to just above 10%.
Seven other banks, including Axis and ICICI, are also selling their stakes.
With this deal (already cleared by India's competition watchdog), SMBC will become Yes Bank's biggest shareholder—though not its promoter.
Yes Bank's recent performance and SMBC's India ambitions
Yes Bank has been on the upswing, reporting a 63% jump in profit last quarter and more than doubling profits for the year (₹2,406 crore).
For SMBC, it's all about expanding its presence in India and tapping into one of Asia's fastest-growing banking markets.