YES Bank Denies Reports Of Stake Sale To Sumitomo Mitsui

YES Bank on Tuesday dismissed media reports of a controlling stake sale to Japan’s Sumitomo Mitsui Banking Corp. as “speculative,” clarifying that the discussions are only preliminary and do not warrant a disclosure at this stage.

Several reports had claimed Sumitomo was in talks with State Bank of India (SBI), which owns a 24% stake in YES Bank, to acquire up to 20% of that holding. Shares of YES Bank surged 9% after the reports surfaced.

“The bank is on a growth trajectory and routinely explores opportunities with various stakeholders, which are aimed at enhancing shareholder value,” YES Bank said in a regulatory filing.

According to a report by Moneycontrol, Sumitomo might infuse fresh capital worth 6–7% and could also make an open offer to increase its stake to 51%. Apart from SBI, YES Bank has other institutional shareholders including Axis Bank, Kotak Mahindra Bank, ICICI Bank, and HDFC Bank, which collectively hold 7.36%. Life Insurance Corporation of India holds an additional 3.98% stake.