SMBC rules out increasing stake in Yes Bank beyond current level

Core Viewpoint - Sumitomo Mitsui Banking Corporation (SMBC) has no immediate plans to increase its stake in Yes Bank beyond 24.99%, focusing instead on contributing to the bank's board as its largest shareholder [4]. Group 1: Stake and Regulatory Context - SMBC's current holding in Yes Bank stands at 24.2% [4]. - Under India's takeover regulations, acquiring 25% or more in a listed company triggers a mandatory open offer to purchase at least an additional 26% from public shareholders, potentially resulting in a majority stake of 51% [4]. Group 2: Strategic Focus - The bank is not actively looking to increase its stake beyond the regulatory permissible limit of 24.99% and emphasizes the need for Yes Bank to address various operational areas [4]. - Rajeev Kannan, group executive officer and head of SMBC Group's India division, stated that the focus is on ensuring that Yes Bank's plans are executed effectively [4]. Group 3: Market Expectations and Historical Context - Analysts had widely expected that SMBC might raise its stake further and launch an open offer [4]. - In August, SMBC received Reserve Bank of India's approval to buy up to a 24.99% stake in Yes Bank from State Bank of India and seven other shareholders after a deal in May to purchase a 20% stake for $1.6 billion, marking the largest cross-border financial sector merger and acquisition in the country [4].