Mumbai: After Japanese finance major Sumitomo Mitsui Banking Corporation (SMBC) bought a controlling stake in Mumbai-based Yes Bank, reports have emerged about SMBC’s plan to make Yes Bank a fully owned subsidiary of the company. Following this, Yes Bank’s shares saw a nearly 9% drop from Rs.23 on June 02 to Rs.21 when markets opened the following day.
SMBC already owns SMBC India Credit, an NBFC it acquired in 2021.
“In this regard, the Bank is not privy to discussions in relation to matters stated in the article. Further, references to the Bank having ‘road map’ discussions with the RBI are factually incorrect. The Bank will comply with the requirements of Regulation 30 of the Listing Regulations, as and when required,” Yes Bank said in a response to the reports.
The RBI had earlier relaxed its stringent rules to allow SMBC to buy its stake in Yes Bank even as reports have emerged of two other foreign investors keen to buy a stake in IDBI bank.
RBI governor Sanjay Malhotra had said earlier that the RBI is aiming to examine shareholding and licensing rules. Sources in the RBI have also hinted that the RBI is open to examine investment proposals on a case-to-case basis, as foreign banks are keen to invest in one of the world’s fastest growing economies.
