The Reserve Bank of India (RBI) has granted approval for significant amendments to the Articles of Association of Yes Bank. These changes facilitate the appointment of nominee directors on the bank’s board, as confirmed in a regulatory filing on Wednesday.
The move comes ahead of the expected acquisition by Japan-based Sumitomo Mitsui Banking Corporation (SMBC), which plans to purchase a 20% stake in Yes Bank. This transaction involves buying 13.19% from the State Bank of India (SBI) and 6.81% from seven other banks, including Axis Bank and HDFC Bank.
Endorsements from both the Competition Commission of India (CCI) and RBI ensure that SMBC will not be classified as a promoter of Yes Bank. As a consequence of these developments, SBI will reduce its holdings in Yes Bank from 24% to just over 10%.
(With inputs from agencies.)
