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News Topical, Digital Desk : Yes Bank Share: According to Bloomberg report, Sumitomo Mitsui Financial Group (SMFG) is considering investing an additional $1.1 billion (Rs 9,100 crore) in Yes Bank Limited.
Japan's second-largest bank invested in Yes Bank just two months ago. People familiar with the matter said SMFG is looking to acquire about 5% of Yes Bank's shares from US investment fund Carlyle Group Inc. and other smaller shareholders.
It is also reported that SMFG may also buy about $680 million worth of convertible bonds issued by Yes Bank to help boost growth. If this new investment reaches the final stage, SMFG's total investment in Yes Bank will reach $2.7 billion, taking SMFG's stake in Yes Bank to about 25%. However, these discussions are still ongoing and no final decision has been taken. A spokesperson for SMFG's banking unit Sumitomo Mitsui Banking Corp declined to comment on the matter. On the other hand, a representative of Carlyle also declined to comment, while Yes Bank also did not immediately respond. Stock performance Yes Bank shares have risen about 2.1% this year, giving the bank a market value of about $7.3 billion. In May, SMFG agreed to acquire a 20% stake in Yes Bank for about $1.6 billion. For Japan's second-largest lender, Yes Bank is an opportunity to hold a significant stake in a large Indian firm. Yes Bank has steadily rebounded since being rescued by the Reserve Bank of India in 2020, when it was beset by bad loans, and SBI had to infuse fresh capital with other parties. Sumitomo Mitsui and its Japanese counterparts have been making deals in India. In March last year, it spent $700 million to take full control of a local company known as Fullerton India Credit Company, while it bought a stake worth $2 billion earlier in 2021.
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