SMFG considers further $1.1 billion investment in Yes Bank
Sumitomo Mitsui Financial Group (SMFG), one of Japan's top banks, is set to invest another $1.1 billion in Yes Bank, just months after grabbing a 20% stake for $1.6 billion in May 2023.
This new move involves buying extra shares from Carlyle Group and others, plus snapping up $680 million in convertible bonds.
SMFG's stake will jump to nearly 25%
If the deal goes through, SMFG's stake will jump to nearly 25%, making its presence even stronger in India's fast-growing banking scene.
Yes Bank has come a long way since its 2020 rescue and now sits at a market value of about $7.3 billion—so this partnership could give both sides more room to grow.
SMFG's previous investment in India
This isn't SMFG's first big bet on India—they also bought a local finance company for $700 million last year.
The Japanese bank clearly sees huge potential here and wants to be part of the country's booming financial sector by building up several businesses under its umbrella.