Japan’s SMBC Buys 20% Stake in YES Bank for around Rs 13,483 Crore

Current Context: Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has acquired a 20% stake in YES Bank for ₹13,483 crore, marking the largest foreign investment in India’s banking sector.

Key Highlights:

Stake Purchase Breakdown: SMBC acquired 13.19% from SBI for ₹8,889 crore and 6.81% from seven other banks, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank, for ₹4,594 crore.
Strategic Impact: The deal strengthens SMBC’s presence in India, positioning it as YES Bank’s largest shareholder.
Regulatory Approvals: The transaction is subject to clearance from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
Market Reaction: YES Bank’s stock surged 10%, closing at ₹20.05 per share, following the announcement.

Question:

Q.1 What percentage stake has Sumitomo Mitsui Banking Corporation (SMBC) acquired in YES Bank?
a) 20%
b) 18%
c) 15%
d) 25%

Answer: a) Sumitomo Mitsui Banking Corporation (SMBC) has acquired a 20% stake in YES Bank, which is the largest foreign investment in India’s banking sector.