RBI Clears YES Bank Board Rejig After Sumitomo Mitsui Picks Up 24.99% Stake

YES Bank Ltd. on Tuesday said the Reserve Bank of India has approved the restructuring of its board after Sumitomo Mitsui Banking Corp. acquired up to 24.99% of its paid-up share capital or voting rights.

Under the new structure, the Japanese banking group can nominate two directors, while State Bank of India will retain the right to nominate one director, the private lender said in an exchange filing.

The stake purchase was completed following the Competition Commission of India’s approval on September 2, with Sumitomo Mitsui acquiring shares from SBI and other public-sector banks that had invested in YES Bank during its 2020 reconstruction.

YES Bank had earlier said that SBI’s second nominee would step down once the transaction was closed.