SMBC in Advanced Talks to Acquire Majority Stake in Yes Bank
| Category | Details |
|---|---|
| Event | Sumitomo Mitsui Banking Corporation (SMBC) in talks to acquire 51% stake in Yes Bank |
| Key Players | - SMBC (Japan)<br>- Yes Bank (India)<br>- State Bank of India (SBI) |
| Current Status | - Advanced talks<br>- RBI approval pending<br>- Yes Bank denies acquisition talks |
| Stakeholders | - SBI: 24% stake<br>- LIC and other banks: ~11% stake<br>- Public shareholders: Majority |
| Proposed Acquisition Plan | - Acquire 25% from existing shareholders (including SBI)<br>- Open offer for additional 26% |
| Market Reaction | Yes Bank shares surged 10% before dropping to 1% after the bank's denial. |
| Background of Yes Bank | - Faced near-collapse in 2020<br>- Restructured with SBI's support<br>- SBI holds 24% stake |
| Strategic Significance | - Long-term stability<br>- Global best practices<br>- Increased FDI in Indian banking |