Yes Bank employees assured they won't lose their jobs
What's the story
Toru Nakashima, the global CEO of Sumitomo Mitsui Banking Corporation (SMBC), has assured Yes Bank employees that their jobs are secure. The assurance came during a town hall meeting at the private lender's Mumbai headquarters. The meeting followed SMBC receiving RBI's approval in August to acquire up to a 24.99% stake in Yes Bank, a deal that was initially signed in May with the State Bank of India and seven other shareholders.
Growth assurance
Nakashima assures commitment to Yes Bank's growth
During the town hall meeting, Nakashima emphasized that SMBC is committed to taking Yes Bank to new heights of growth. He said this would be achieved by leveraging its global expertise and knowledge. The statement comes amid fears among staff about possible layoffs under a new management focused on cost-cutting measures.
Acquisition details
RBI's approval for SMBC's stake acquisition in Yes Bank
In August, the Reserve Bank of India (RBI) approved SMBC's plan to acquire up to a 24.99% stake in Yes Bank from SBI and seven other shareholders. The deal was signed in May for $1.6 billion, making it the largest cross-border M&A transaction in India's financial services space. Rajeev Kannan, Group Executive Officer and head of SMBC Group's India division, had earlier said they don't plan on taking an executive role at Yes Bank as its largest shareholder.
Market response
Yes Bank shares on the rise
Following the acquisition, Yes Bank's shares have witnessed a positive trend. The stock was trading at ₹22.76 per share, up by 0.40% at the time of writing. Over the last month, it has gained nearly 9% and over 26% in six months.