The amendment allows two nominee directors from SMBC and one from State Bank of India (SBI) to join Yes Bank’s board of directors. These appointments will take effect once transactions contemplated under the special purchase agreement (SPA) and other relevant agreements are completed.
“Accordingly, the approval required from the RBI for the amendment to the Articles of the Bank has been received,” Yes Bank said in a regulatory filing on September 10.
Yes Bank shares gained nearly 3% in Wednesday’s trade, rallying as much as 2.80% to ₹20.92 apiece on the BSE, supported by strong market momentum.
In August, the RBI cleared SMBC’s proposal to acquire up to a 24.99% stake in Yes Bank. This was followed by the Competition Commission of India (CCI) granting approval on September 3.
SMBC, a wholly owned subsidiary of Sumitomo Mitsui Financial Group, plans to acquire a 20% stake in Yes Bank through a secondary purchase. This includes 13.19% from SBI and 6.81% from seven other shareholders, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.
The Mumbai-based private lender has also shown steady operating performance. For the June quarter, net interest income (NII) rose 5.8 % year-on-year to ₹2,370 crore, while net profit surged 57% to ₹808.6 crore.
Other income climbed to ₹1,824 crore from ₹1,270 crore a year earlier. Asset quality remained stable with gross NPAs at 1.6% and net NPAs at 0.3%. Provisions eased to ₹284 crore compared with ₹317 crore in March.
(With PTI inputs)
