Japan’s SMBC, MUFJ eye majority stake in Yes Bank: report

Japanese banking giants Sumitomo Banking Corp. and Mitsubishi UFJ Financial Group (MUFJ) are weighing acquiring a majority stake in Yes Bank Ltd, Moneycontrol reported, citing four people aware of the talks.

A Middle East-based company has also expressed its interest in picking up a stake, the report said, citing three of the people mentioned above.

The move comes after a consortium led by State Bank of India (SBI) is looking to sell its stake.

Mint last month reported that Yes Bank is seeking a new promoter to acquire up to a 51% stake in the lender at a valuation of about $9 billion. The lender has asked Citigroup’s India subsidiary to find a buyer, the report said.

Yes Bank has a market capitalization of about ₹69,417 crore (or $8.31 billion) on Monday, 15 April.

Yes Bank had initiated talks for the stake sale and invited domestic and global investors, the Mint report said, highlighting that any new promoter holding a stake of 26% and above will need the Reserve Bank of India’s sanction.

The company’s recent annual report showed that it doesn’t have a promoter. Financial institutions comprising State Bank of India (SBI), ICICI Bank Ltd, and others together held a 34.36% stake, with SBI alone holding a 26.14% stake.

These institutions had stepped in to rescue the lender, which was on the verge of winding up under an earlier management, in 2020. The latest stake sale would offer these stakeholders an exit.

“Today, some media reported on our bank’s strategic investment in India, but it is not made public from our company or our bank,” MUFJ said in a statement.

Spokespeople for SMBC and Yes Bank did not reply to emailed queries.