SMBC in talks to buy stake in India's Yes Bank, Economic Times reports

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Japan's Sumitomo Mitsui Banking Corp (SMBC) is in advanced discussions to buy a stake in India's Yes Bank, the Economic Times reported on Tuesday, citing people aware of the matter.

The move could trigger an open offer for an additional 26 per cent of the private lender, the report said. SMBC currently does not hold a stake in Yes Bank.

Reuters last year reported that State Bank of India, the country's largest lender, was looking to sell its 24 per cent stake in Yes Bank, with SMBC one of the two firms in advanced talks to acquire a majority stake.

Yes Bank, SMBC - a unit of Sumitomo Mitsui Financial Group, Japan's second-biggest bank, and SBI did not immediately respond to Reuters' emails seeking comment.

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Yes Bank was restructured by the Indian central bank in March 2020 with the help of a consortium of local lenders after its financial health deteriorated.

Apart from SBI, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank and Life Insurance Corporation of India together hold an 11.34 per cent stake in Yes Bank.

It is not clear whether other financial institutions apart from SBI are planning to exit, the Economic Times report said.

Shares of Yes Bank closed 0.2 per cent higher on Monday.

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