Latest news with #SMBC
Economic Times
19 hours ago
- Business
- Economic Times
Yes Bank awaits SMBC entry for top deck recast
Mumbai: Succession planning at Yes Bank, where Sumitomo Mitsubishi Banking Corp (SMBC) has entered into binding deals to buy at least 20% equity, will get a clearer shape once the stake purchase by the Japanese investor is concluded, Prashant Kumar, Yes Bank's managing director and chief executive officer, told ET in an interview."We had applied for a six-month extension (for the current leadership), and the thought process is that since the new investors will be joining the board, they should have an opportunity, and the board can collectively discuss and decide the best way forward," Kumar tenure has been extended by the regulator for a period of six months with effect from October. He also said SMBC had already applied to the Reserve Bank of India (RBI) to acquire a 20% stake from SBI and other banks that came together to bail out the private lender five years ago, after the regulator had ordered its board to be superseded just before the Covid lockdowns. SMBC has already applied to the antitrust regulator, the Competition Commission of India (CCI), for buying the Yes Bank stake, Kumar said. "They (SMBC) have already made an application to the CCI," Kumar said. "We expect once these two approvals come, then this transaction would be finalised."The Japanese lender's initial application to the RBI was itself for buying 25% ownership, allowing SMBC to immediately increase stake further once the regulatory approvals are in place, ET reported on July Demand, NIMs Separately, Kumar said the September quarter would be the most challenging for the banking sector as credit growth remains sluggish and the full impact of the repo rate cut begins to flow through the system, weighing on margins. "Q2 would be the toughest quarter for the entire banking industry, because the 50-bps rate cut would lead to repricing of the entire loan book linked to external benchmarks, though deposits will take some time to reprice," Kumar said. "Quarter three onwards I think it would stabilise, if there is no further rate cut." Sixty percent of Yes Bank's loan book is linked to external benchmarks, 10% to the marginal cost of funds-based lending rate (MCLR), and the remaining 30% comprises fixed-rate loans. Kumar also expressed concern over weak credit demand in the economy. The bank's advances grew at a modest 5% in the June quarter, while deposits rose by 4%."Demand (credit) is low, corporates are either accessing the debt or the overseas market, they have a good balance sheet, they are sitting with the cash, so reliance on the bank loans have come down on the corporate side," he said.
Time of India
a day ago
- Business
- Time of India
Yes Bank awaits SMBC entry for top deck recast
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Mumbai: Succession planning at Yes Bank, where Sumitomo Mitsubishi Banking Corp ( SMBC ) has entered into binding deals to buy at least 20% equity, will get a clearer shape once the stake purchase by the Japanese investor is concluded, Prashant Kumar Yes Bank 's managing director and chief executive officer, told ET in an interview."We had applied for a six-month extension (for the current leadership), and the thought process is that since the new investors will be joining the board, they should have an opportunity, and the board can collectively discuss and decide the best way forward," Kumar tenure has been extended by the regulator for a period of six months with effect from also said SMBC had already applied to the Reserve Bank of India (RBI) to acquire a 20% stake from SBI and other banks that came together to bail out the private lender five years ago, after the regulator had ordered its board to be superseded just before the Covid has already applied to the antitrust regulator, the Competition Commission of India (CCI), for buying the Yes Bank stake, Kumar said."They (SMBC) have already made an application to the CCI," Kumar said. "We expect once these two approvals come, then this transaction would be finalised."The Japanese lender's initial application to the RBI was itself for buying 25% ownership, allowing SMBC to immediately increase stake further once the regulatory approvals are in place, ET reported on July Kumar said the September quarter would be the most challenging for the banking sector as credit growth remains sluggish and the full impact of the repo rate cut begins to flow through the system, weighing on margins."Q2 would be the toughest quarter for the entire banking industry, because the 50-bps rate cut would lead to repricing of the entire loan book linked to external benchmarks, though deposits will take some time to reprice," Kumar said. "Quarter three onwards I think it would stabilise, if there is no further rate cut."Sixty percent of Yes Bank 's loan book is linked to external benchmarks, 10% to the marginal cost of funds-based lending rate (MCLR), and the remaining 30% comprises fixed-rate also expressed concern over weak credit demand in the economy. The bank's advances grew at a modest 5% in the June quarter, while deposits rose by 4%."Demand (credit) is low, corporates are either accessing the debt or the overseas market, they have a good balance sheet, they are sitting with the cash, so reliance on the bank loans have come down on the corporate side," he said.
Straits Times
2 days ago
- Business
- Straits Times
Reaction to U.S. trade deal with Japan
President Donald Trump on Tuesday said the U.S. and Japan had struck a trade deal that includes a 15% tariff that will be levied on U.S. imports from the country. In a post on Truth Social, Trump said the deal would include $550 billion of Japanese investments in the United States. COMMENTS KRISTINA CLIFTON, SENIOR ECONOMIST, COMMONWEALTH BANK OF AUSTRALIA, SYDNEY: "We don't know all the details yet, apart from just that he will place a 15% tariff on imports from Japan. "It's a lower rate than what President Trump announced on Liberation Day, so to that end, it's a better outcome than potentially they could've seen. Steel, aluminium, and also cars are important exports for Japan, so it'll be interesting to see if there's any specific carve-outs for those." HIROFUMI SUZUKI, CHIEF CURRENCY STRATEGIST, SMBC, TOKYO: Top stories Swipe. Select. Stay informed. Business Singapore's digital banks finding their niche in areas like SMEs as they narrow losses in 2024 World Trump says US will charge 19% tariff on goods from Philippines, down from 20% Singapore Two found dead after fire in Toa Payoh flat Singapore 2 foreigners arrested for shop theft at Changi Airport Opinion Most companies onboard wrong – here's how to get it right Sport AC Milan's Rafael Leao gives Singapore fan an unforgettable birthday Life Ozzy Osbourne, Black Sabbath's bat-biting frontman turned reality TV star, dies aged 76 Singapore Ports and planes: The 2 Singapore firms helping to keep the world moving "This is good news for the Japanese economy. However, it alone will not prompt the Bank of Japan to raise interest rates, and the pressure to buy yen will likely be limited. If anything, political instability is having more of an impact on the market, and the pressure for yen depreciation is likely to continue." REUTERS
Yahoo
2 days ago
- Business
- Yahoo
Reaction to U.S. trade deal with Japan
(Reuters) -President Donald Trump on Tuesday said the U.S. and Japan had struck a trade deal that includes a 15% tariff that will be levied on U.S. imports from the country. In a post on Truth Social, Trump said the deal would include $550 billion of Japanese investments in the United States. COMMENTS HIROFUMI SUZUKI, CHIEF CURRENCY STRATEGIST, SMBC, TOKYO: "This is good news for the Japanese economy. However, it alone will not prompt the Bank of Japan to raise interest rates, and the pressure to buy yen will likely be limited. If anything, political instability is having more of an impact on the market, and the pressure for yen depreciation is likely to continue." Sign in to access your portfolio
Reuters
2 days ago
- Business
- Reuters
VIEW Reaction to U.S. trade deal with Japan
July 23 (Reuters) - President Donald Trump on Tuesday said the U.S. and Japan had struck a trade deal that includes a 15% tariff that will be levied on U.S. imports from the country. In a post on Truth Social, Trump said the deal would include $550 billion of Japanese investments in the United States. KRISTINA CLIFTON, SENIOR ECONOMIST, COMMONWEALTH BANK OF AUSTRALIA, SYDNEY: "We don't know all the details yet, apart from just that he will place a 15% tariff on imports from Japan. "It's a lower rate than what President Trump announced on Liberation Day, so to that end, it's a better outcome than potentially they could've seen. Steel, aluminium, and also cars are important exports for Japan, so it'll be interesting to see if there's any specific carve-outs for those." HIROFUMI SUZUKI, CHIEF CURRENCY STRATEGIST, SMBC, TOKYO: "This is good news for the Japanese economy. However, it alone will not prompt the Bank of Japan to raise interest rates, and the pressure to buy yen will likely be limited. If anything, political instability is having more of an impact on the market, and the pressure for yen depreciation is likely to continue."
