Yes Bank on Tuesday refuted media reports suggesting Sumitomo Mitsui Banking Corporation (SMBC) seeking the Reserve Bank of India (RBI) nod for licence to operate a wholly-owned arm. In a regulatory filing, Yes Bank said that the private sector lender is not privy to any such discussions.
Earlier, media reports citing sources, maintained that SMBC is set to approach the RBI for a licence to operate a fully owned subsidiary in India, a move that is part of the Japanese conglomerate’s plan to acquire a controlling stake in Yes Bank.
“In this regard, the Bank is not privy to discussions in relation to matters stated in the article. Further, references to the Bank having ‘road map’ discussions with the RBI are factually incorrect. The Bank will comply with the requirements of Regulation 30 of the Listing Regulations, as and when required,” Yes Bank said on Tuesday.
SMBC needs the RBI’s approval to set up a wholly owned subsidiary in India before State Bank of India (SBI) and other lenders sell their remaining stake of nearly 14 per cent to the Japanese conglomerate, the media report had stated, citing sources. Currently, SMBC operates four branches in India. According to the reports, the RBI has informally assured SMBC that it can hold a majority stake in the bank.
Earlier this month, Yes Bank had announced a 20 per cent stake sale by SBI and seven other private lenders to SMBC, who would buy over 413 crore shares for Rs 13,482 crore at a price of Rs 21.50 apiece.
Meanwhile, shares of Yes Bank dropped by 8.47 per cent at 10:40 am on Tuesday to a trading price of Rs 21.30.