A sign board of Sumitomo Mitsui Banking Corporation is seen outside its branch in Tokyo July 30, 2014. REUTERS/Yuya Shino/File Photo
MUMBAI: Japan’s Sumitomo Mitsui Banking Corp (SMBC) has received Indian central bank approval to buy up to 24.99% of India’s Yes Bank, says the Indian bank in a stock exchange filing last Saturday.
The Reserve Bank of India (RBI) has also decided that SMBC would not be treated as a “promoter” of Yes Bank following the deal, which would have involved additional regulatory requirements, Yes Bank said.
Additionally, in May, the banks informed exchanges that SBMC had inked a deal to take a 20% stake in Yes Bank for US$1.6 bil, making it the largest cross-border merger and acquisition deal in India’s financial sector.
Sources familiar with the matter told Reuters last month that SMBC was seeking approval to buy an additional 4.9% stake in Yes Bank. — Reuters
