Japan's SMBC seeks RBI approval for 4.9% additional stake in Yes Bank, sources say
In May, SMBC inked a deal to take a 20 per cent stake in the private lender for $1.6 billion, Yes Bank had announced in a stock exchange filing.
The RBI, India's central bank as well as its banking regulator, is yet to give its clearance on the transaction and is studying the proposal, the first source said.
Both sources declined to be identified as the transaction details are confidential.
Reuters could not immediately ascertain the timeline of the additional purchase. Yes Bank and the RBI didn't immediately respond to Reuters' emails seeking comments. SMBC declined to comment on specific deals.
Bloomberg News first reported on Tuesday that SMBC is exploring an additional investment of $1.1 billion in Yes Bank for a 5 per cent stake, held by U.S. investment fund Carlyle Group Inc. and other minority shareholders.
The news agency also reported that the Japanese lender was likely to buy about $680 million in convertible bonds issued by Yes Bank to help boost growth, citing sources.
Reuters couldn't independently verify the value of the proposed additional investment and its plans to purchase the convertible bonds.
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