Yes Bank Stock Jumps as Japan's SMBC Buys 20% Stake

Shares of private lender

k witnessed a significant surge of 9% in early trading on Monday following the announcement that Japan's Sumitomo Mitsui Banking Corporation (SMBC) will acquire a 20% stake in the Indian bank. This marks a substantial foreign investment in the Indian private banking sector. Yes Bank, in a filing with the stock exchange, stated that the deal is subject to customary closing conditions and requires approvals from regulatory bodies, including the Reserve Bank of India and the Competition Commission of India. The Mumbai-based lender highlighted the transaction as a crucial step towards its future growth, increased profitability, and value creation. Yes Bank anticipates leveraging SMBC's global expertise in this new phase. It's worth recalling that ank of India (SBI) and seven other banks had invested in Yes Bank as part of its Reconstruction Scheme in March 2020. This latest development signals a new chapter for Yes Bank with significant international backing.