Latest news with #SumitomoMitsuiBankingCorp
Time of India
5 days ago
- Business
- Time of India
Yes Bank set to raise up to Rs 16,000 crore
MUMBAI: Yes Bank's board approved several proposals, including a plan to raise Rs 7,500 crore via equity and Rs 8,500 crore via debt, following Japan's Sumitomo Mitsui Banking Corp's planned entry as a strategic investor. The decisions, taken on June 3, mark a shift in the bank's capital structure and governance framework. The proposals are subject to shareholder and regulatory approvals. The board also approved amendments to articles of association, giving SMBC the right to maintain its stake in future share issuances and to nominate two directors to the board. SBI will be allowed to nominate one. These moves give the Japanese bank significant influence in board affairs. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
6 days ago
- Business
- Business Standard
India may ease bank ownership rules as foreign interest, capital needs grow
The Indian banking regulator is signalling possible rule changes ahead that would let foreigners own more of India's banks, spurred by overseas institutions' eagerness for acquisitions and the fast-growing economy's need for more long-term capital. The Reserve Bank of India last month bent its rules to let Japan's Sumitomo Mitsui Banking Corp buy a 20 per cent stake in Yes Bank, and two foreign institutions are vying for a stake in IDBI Bank, highlighting the pressure to ease foreign ownership rules that are among the strictest of any major economy. RBI Governor Sanjay Malhotra told the Times of India last week that the central bank was examining shareholding and licensing rules for banks as part of a broader review. A source familiar with the central bank's thinking said it would be more open to letting regulated financial institutions own bigger stakes, with approvals on a case-by-case basis, and to certain rule changes that could address disincentives for foreign acquisitions. Analysts say foreign banks are keen for deals in India, the world's fastest-growing major economy, especially as it angles for regional trade agreements. Such pacts could open up new opportunities in India for global lenders elsewhere in Asia and the Middle East. "The interest is driven by India's strong economic growth and large under-penetrated market," said Madhav Nair, deputy chairman of the Indian Banks Association. Indian regulators, for their part, worry that India lags other large economies in mobilising banking capital, which will be vital to sustaining rapid economic growth. Alka Anbarasu, associate managing director at Moody's Investors Service, said India will need much more capital for its banking system over the medium term. "Whether this has prompted the regulator to consider bringing in strong international players into the banking system, it would be a good rationale for doing so," she said. While most large global banks from Citibank to HSBC to Standard Chartered have operations in India, they are focused on the more profitable corporate and transaction banking segments, along with trading, rather than bread-and-butter lending. The share of foreign banks in outstanding bank credit in India is less than 4 per cent, central bank data shows. Banking remains one of the most guarded sectors of the Indian economy. While foreigners including portfolio investors can own up to 74 per cent, regulations limit a strategic foreign investor's stake to 15 per cent. Foreign banks are also deterred by a maze of other regulations, including a 26 per cent cap on voting rights and a requirement that any large shareholding by a so-called promoter - a strategic investor with direct influence over management decisions - be sold down to 26 per cent within 15 years. The RBI is open to giving foreign buyers more time to sell down their stake, the source familiar with the bank's thinking said. The source declined to be identified as the deliberations are confidential. The RBI did not respond to an email seeking comment. The source also highlighted the banking regulator's increased openness to case-by-case exemptions from the 15 per cent ownership limit, as offered for the Yes Bank purchase. The $1.58 billion deal was the largest cross-border acquisition ever in India's financial sector. Two foreign investors - Canada's Fairfax Holdings and Emirates NBD - are also contending for a 60 per cent stake in government-owned IDBI Bank. Emirates recently received regulatory approval to set up an Indian subsidiary, making it only the third major foreign bank to do so after Singapore's DBS and State Bank of Mauritius. The decision was prompted by an interest to acquire a majority stake in IDBI Bank, a source familiar with the buyers' thinking said. Emirates NBD declined to comment. Fairfax did not respond to a request for comment. An increase in the 26 per cent cap on voting rights, or in the 15 per cent investment limit, could encourage foreign bank investors, ratings agency Fitch said in a note last week. It believes the RBI's preference is for foreign banks with a strong performance and solid governance to acquire stakes larger than 26 per cent through wholly owned subsidiaries regulated in India. The source familiar with RBI thinking said the limit on voting rights was hard-coded in law and would need to be reviewed by the finance ministry. On regulatory issues under the central bank's purview, the source added, the stance on foreign strategic investors may need to be adjusted, especially given domestic investors' lack of interest in running banks. "Where the long-term capital will come from will have to be thought through," the source said.
Business Times
19-05-2025
- Business
- Business Times
Malaysia partners with banks to boost investments in Johor special economic zone
[KUALA LUMPUR] Malaysia is partnering with financial institutions to drive investments and financing support for its special economic zone in the southern state of Johor, the economy minister Rafizi Ramli said on Monday. The banks' presence is key to galvanise private sector participation by pooling capital and commerce, Ramli told the Johor-Singapore Special Economic Zone dialogue, aimed at fostering strategic ties among governments, banks and investors. A blueprint for the zone bordering Singapore is to be launched at the end of the year, Ramli said, adding, 'It will be a roadmap outlining the long-term vision, strategic aspirations, and investment opportunities.' Letters of intent were signed with Bank of America, HSBC, Sumitomo Mitsui Banking Corp, CGS International Securities, Maybank and CIMB Bank, he added, while talks were still being held with a European-based bank. He gave no details of the agreements or financial commitments. Malaysia and Singapore set up the special economic zone in January, looking to boost investment and ease the movement of goods and people between the neighbours. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Malaysia has said it was targeting 50 projects in the zone within the first five years, along with the addition of 20,000 skilled jobs. It will establish and manage an infrastructure fund to support companies looking to set up in the zone, while Singapore will establish its own fund to smooth investments and support companies from the city-state operating there. Johor state chief Onn Hafiz Ghazi, who attended the event, said RM27.4 billion (S$8.3 billion) of total approved investment was secured in the first quarter of 2025, with RM23 billion more in the pipeline. 'If these numbers hold, we believe Johor will exceed RM50 billion to RM60 billion in total investments in 2025, surpassing last year's RM48.5 billion,' he said. REUTERS
Business Upturn
12-05-2025
- Business
- Business Upturn
Yes Bank shares surge 4% as SMBC acquires 20% stake for Rs 13,482 crore
By Aman Shukla Published on May 12, 2025, 09:17 IST Yes Bank shares jumped 4% in morning trade following a major investment announcement. Japan's Sumitomo Mitsui Banking Corp. (SMBC) will acquire a 20% stake in Yes Bank for ₹13,482 crore, marking the largest-ever cross-border investment in India's banking sector. As of 9:16 AM, the shares were trading 4.15% higher at Rs 20.85. The acquisition will be made through a secondary share purchase at ₹21.50 per share, valuing Yes Bank at approximately $7.9 billion. SMBC will acquire 13.19% from State Bank of India (SBI) and 6.81% from other existing shareholders. In an official statement on May 9, 2025, Yes Bank confirmed the deal and highlighted the strategic partnership's potential to boost the bank's growth and international connectivity. According to sources familiar with the deal, SMBC aims to increase its stake gradually, eventually triggering an open offer. However, under Reserve Bank of India (RBI) norms, its voting rights will be capped at 26%. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
10-05-2025
- Business
Sumitomo Mitsui Financial to Acquire Stake in Indian Bank
News from Japan Economy May 10, 2025 13:46 (JST) Tokyo, May 10 (Jiji Press)--Sumitomo Mitsui Banking Corp. will spend 134.8 billion Indian rupees to acquire a 20 pct stake in Yes Bank, an Indian commercial bank, Sumitomo Mitsui Financial Group Inc., the parent of the Japanese bank, said Friday. The Japanese bank will send two executives to sit on Yes Bank's board of directors. Yes Bank, founded in 2003 and based in Mumbai, is the six-largest commercial bank in India in terms of assets. It has more than 1,200 branches across the country. The investment in Yes Bank comes as the Japanese banking group puts priority on India, Vietnam, the Philippines and Indonesia. In India, the group took full control of a consumer finance company in 2024. The latest investment will allow it to provide a broad range of financial services to both retail and corporate customers in the country. [Copyright The Jiji Press, Ltd.] Jiji Press
