Japan’s SMBC to Buy 20% Stake in YES Bank – Big News in Indian Banking.

What’s Happening? Japan's SMBC (Sumitomo Mitsui Banking Corporation) is going to buy 20% of YES Bank for ₹13,483 crore. This is one of the biggest foreign investments in an Indian bank! Who is Selling the Shares? • State Bank of India (SBI) will sell 13.19% of YES Bank for ₹8,889 crore. • 7 other Indian banks together will sell 6.81% for ₹4,594 crore. These banks include: Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank. At What Price? SMBC will buy the shares at ₹21.5 per share. Why is this Important? • This is the largest foreign investment ever in an Indian bank. • It shows that foreign investors trust India’s banking system. • YES Bank will now get strong international support and expertise to grow better and faster. What Does YES Bank Say? YES Bank’s CEO, Prashant Kumar, said this deal will help the bank grow and improve further. He also thanked SBI for supporting the bank since 2020. What Does SMBC Say? SMBC’s top leaders said: • India is an important market for them. • They believe in India’s growth story. • YES Bank has great leadership and they’re excited to be part of its future. Some More Info: • In March 2020, SBI and other banks helped YES Bank during its tough time under the YES Bank Reconstruction Plan. • This deal still needs approval from the Reserve Bank of India and Competition Commission of India. Other Major Shareholders in YES Bank: • Advent International (Private Equity) – 9.2% • Carlyle Group – 6.84% • LIC – 3.98% In summary, this deal is a major milestone for YES Bank and shows global confidence in India's banking sector. It could help improve services, bring global standards, and open more opportunities in the future.