Japan-based bank’s YES Bank stake buy cleared by fair trade regulator

The Competition Commission of India (CCI) — the country’s fair trade regulator — on Tuesday said it has approved the proposed acquisition of certain share capital and voting rights in private sector lender YES Bank by Japan-based Sumitomo Mitsui Banking Corporation (SMBC). 

The regulator said that a detailed order will be issued later.

The Japanese commercial bank is a subsidiary of Sumitomo Mitsui Financial Group. 

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Last month, the Japanese lender received the Reserve Bank of India nod for the acquisition of up to 24.99 per cent in YES Bank. According to the central bank, Sumitomo Mitsui Banking Corp would not be treated as the private sector commercial bank’s promoter. 

Earlier this year, the Japanese bank had signed a pact to pick a 20 per cent stake in YES Bank. That was set to be the country’s largest cross-border M&A deal in the financial space. 

As a foreign bank, SMBC has branches in New Delhi, Mumbai, Chennai and Gandhinagar. 

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YES Bank is a full-service bank offering a wide array of products, services and technology-driven digital offerings, catering to retail, MSMEs as well as corporate clients.

Earlier on Tuesday, the YES Bank stock ended a volatile session flat, at Rs 19.56, on BSE. 

During the session, YES Bank shares see-sawed in the range of Rs 19.37-19.81 around the flatline. 

Once part of the Nifty Bank, YES Bank shares have lost 18 per cent of their value in the past year, as of Tuesday, underperforming a 2.8 per cent decline in the Nifty 50 as well as a 4.3 per cent rise in the Nifty Bank. 

The stock was pulled out of the Nifty Bank back in 2020. It was also excluded from the Nifty 50 index that year. 

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