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The head of one of Japan’s largest lenders will be visiting India this week with regard to the purchase of a stake in Yes Bank.
What Happened: In yet another development for the private lender, the CEO of Sumitomo Mitsui Banking Corporation (SMBC), Akihiro Fukutome, will likely visit India to buy a stake in it, according to a report by Mint.
Fukutome is likely to visit officials from the Reserve Bank of India (RBI) and the State Bank of India to discuss the proposition.
SMBC is reportedly eyeing a valuation of around $5 billion (₹41,981 crore) for a 51% stake in Yes Bank. Earlier, media reports said that RBI had approved a stake sale of up to 51% in the company and granted tentative approval to the bank and several of its major shareholders. The private bank’s current market capitalisation is at ₹76,000 crore.
However, the reports were quashed by Yes Bank, who called the reports “factually incorrect” and “speculative in nature”. SBI was also reportedly looking to offload its entire 23.99% stake in the bank. The stake sale had also attracted major interest from Japan’s Mitsubishi UFJ Financial Group and Mizuho Bank.
The Japanese lender has selected JPMorgan as its financial adviser and J Sagar Associates as its legal adviser for the reported stake acquisition. Additionally, Yes Bank has engaged Citigroup to identify potential promoters.
Disclaimer: The correspondent holds a minimal quantity of YES BANK stocks.
