Synopsis : Yes Bank has denied media reports suggesting it is in discussions with the RBI over SMBC’s plans for a wholly-owned subsidiary in India. The bank called the claims “factually incorrect” and clarified its non-involvement.
Yes Bank Clarifies: No RBI Licence Talks with SMBC
Yes Bank on Tuesday firmly denied media reports that hinted at Sumitomo Mitsui Banking Corporation (SMBC) planning to seek a Reserve Bank of India (RBI) licence to operate a wholly-owned subsidiary in India as part of a broader strategy to gain control of Yes Bank.
In an official regulatory filing, Yes Bank stated:
“The Bank is not privy to discussions in relation to matters stated in the article. References to the Bank having ‘road map’ discussions with the RBI are factually incorrect.”
Background: What the Reports Claimed
Media reports earlier in the day claimed:
SMBC was set to approach the RBI for a licence to operate independently in India.
This was allegedly part of a larger plan to acquire a controlling stake in Yes Bank.
The RBI had informally assured SMBC that it could hold a majority stake.
However, Yes Bank clarified that no such roadmap or discussion has taken place with the RBI from its side, and it would comply with SEBI Listing Regulations when necessary.
Stock Market Reaction
Amid the confusion and reports, Yes Bank shares slipped 8.47%, trading at ₹21.30 at 10:40 AM on Tuesday. This drop came despite earlier optimism around SMBC’s proposed investment.
The Deal So Far
Earlier this month, Yes Bank confirmed:
20% stake sale by SBI and seven private lenders.
SMBC to acquire 413 crore shares.
Deal value: ₹13,482 crore at ₹21.50 per share.
SMBC currently operates four branches in India. For it to become a majority stakeholder, it would require regulatory green lights, including setting up a subsidiary—a process Yes Bank says it is not directly involved in.
Disclaimer : This article is for informational purposes only and does not constitute financial or investment advice. Always consult a qualified advisor before making financial decisions.
