Japan’s SMFG eyes $1.1b additional investment in India’s Yes Bank: report

The Japanese megabank may raise its stake to 25%, sources said.

Sumitomo Mitsui Financial Group (SMFG) is reportedly considering raising its stake in Indian lender Yes Bank to up to 25%, sources said.

The Japanese megabank is reportedly considering making an additional $1.1b investment in Indian lender Yes Bank, reports Bloomberg, citing “people familiar with the matter.”

SMFG is seeking to acquire about 5% of Yes Bank shares from US investment fund Carlyle Group Inc. and other minority shareholders, the sources said.

SMFG may also buy about $680m in convertible bonds issued by Yes Bank to help boost growth, the people said.

The fresh investment would bring the total amount to $2.7b, giving SMFG a roughly 25% stake in Yes Bank.

Representatives for Sumitomo Mitsui Banking Corp., the banking unit of SMFG, Carlyle and Yes Bank declined to comment.

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