Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has sought approval from the Reserve Bank of India to acquire an additional 4.9 per cent stake in India’s Yes Bank to take its total ownership in the bank to just under 25 per cent, two sources aware of the matter told Reuters.
In May, SMBC inked a deal to take a 20 per cent stake in the private lender for $1.6 billion, Yes Bank had announced in a stock exchange filing.
The RBI, India’s central bank as well as its banking regulator, is yet to give its clearance on the transaction and is studying the proposal, the first source said.
Both sources declined to be identified as the transaction details are confidential.
Reuters could not immediately ascertain the timeline of the additional purchase. Yes Bank and the RBI didn’t immediately respond to Reuters’ emails seeking comments. SMBC declined to comment on specific deals.
Bloomberg News first reported on Tuesday that SMBC is exploring an additional investment of $1.1 billion in Yes Bank for a 5 per cent stake, held by U.S. investment fund Carlyle Group Inc. and other minority shareholders.
The news agency also reported that the Japanese lender was likely to buy about $680 million in convertible bonds issued by Yes Bank to help boost growth, citing sources.
Reuters couldn’t independently verify the value of the proposed additional investment and its plans to purchase the convertible bonds.
Yes Bank’s shares rose as much as 3.3 per cent on the report before trimming some losses to close 2.3 per cent higher.
