Sumitomo Mitsui Financial Group (SMFG) plans a $1.1 billion follow-on investment in YES BANK across two tranches. The move will raise SMFG's total commitment to $2.7 billion and bring its ownership stake to nearly 25%, just below SEBI's 26% threshold that would trigger a mandatory open offer.
The investment comprises two parts: a $420 million equity acquisition of a 5% stake from Carlyle Group and other minority shareholders, and up to $680 million in convertible bonds to support Yes Bank's growth strategies.
Yes Bank's shares rallied 3.3% to ₹20.65 on the BSE following the announcement, reflecting renewed investor confidence in the bank's revival trajectory since the 2020 RBI-led rescue and reconstruction.
This represents one of the largest foreign bank investments in an Indian private sector bank, underscoring SMFG's conviction in Yes Bank's operational and financial turnaround over the past four years.
