YESBANK

April 1 (Reuters) - Yes Bank Ltd YESB.NS:

• YES BANK LTD - APPOINTS S. ANANTHARAMAN AS CHIEF RISK OFFICER EFFECTIVE APRIL 1, 2026

Source text: ID:nNSEyPVXj

Further company coverage: YESB.NS

((Reuters.Briefs@thomsonreuters.com;))

March 31 (Reuters) - Yes Bank Ltd YESB.NS:

• YES BANK LTD - RECEIVES 2.10 BILLION RUPEES FROM TWO TRUSTS IN SECURITY RECEIPTS PORTFOLIO

Source text: ID:nBSE6yGg8b

Further company coverage: YESB.NS

((Reuters.Briefs@thomsonreuters.com;))

March 26 (Reuters) - Yes Bank Ltd YESB.NS:

• YES BANK LTD- GETS TAX PENALTY OF 7.9 MILLION RUPEES

Source text: ID:nnAZN4SNDGG

Further company coverage: YESB.NS

((Reuters.Briefs@thomsonreuters.com;))

Recasts throughout, changes sourcing

March 13 (Reuters) - India will shelve the bids it received for a majority stake sale in IDBI Bank IDBI.NS, as the offers received were below the government's minimum price expectation, a government source told Reuters.

The Indian government and state-owned Life Insurance Corporation of India LIFI.NS had initiated the process to sell 60.7% of the lender in 2022.

India's government owns 45.48% of IDBI Bank, while LIC holds 49.24%.

The existing sale process would be scrapped as the bids received were below the so-called reserve price, or the minimum sale price, set for the sale, the source said.

Bloomberg News reported the development first.

The government may initiate a fresh process when the market appetite improves and there is strong interest among buyers, the source added.

IDBI Bank and India's finance ministry didn't immediately respond to a Reuters request for comment outside regular business hours.

Reuters had reported that the planned sale of IDBI Bank had attracted bids from Canadian investment group Fairfax Financial FFH.TO and Emirates NBD ENBD.DU.

Tepid interest in acquiring the lender controlled by LIC contrasts with strong foreign investor appetite underscored by Dubai-based Emirates NBD's ENBD.DU $3 billion purchase of a 60% stake in RBL Bank RATB.NS and Sumitomo Mitsui Banking Corp's acquisition of a 24% stake in Yes Bank YESB.NS.

(Reporting by Nikunj Ohri and Anna Peverieri; Editing by Louise Heavens)

((Anna.Peverieri@thomsonreuters.com;))

March 12 (Reuters) - India's financial crimes agency has frozen 5.82 billion rupees ($63.07 million) worth of properties linked to Reliance Home Finance Limited RLIC.NS and Reliance Commercial Finance, the Enforcement Directorate said on Thursday.

• The move followed search operations conducted on March 6 in the case of Reliance Power Limited RPOL.NS under the foreign-exchange regulation law.

• With this, the cumulative Reliance Anil Ambani Group attachment has reached 163.10 bln rupees.

• ED said it began the probe on July 22, 2025 based on multiple FIRs from the Central Bureau of Investigation involving cheating and criminal conspiracy, following complaints by Yes Bank YESB.NS, Union Bank of India UNBK.NS and Bank of Maharashtra BMBK.NS.

• The agency said Reliance Home Finance and Reliance Commercial Finance raised over 110 billion rupees in public funds from banks.

• It found public funds were diverted to various Reliance Group companies through numerous shell entities controlled by the Anil Ambani-led group.

• ED said it is pursuing those involved and working towards recovering the diverted funds for rightful claimants and further investigation is ongoing.

• A query sent to Anil Ambani's Reliance group was not immediately answered.

($1 = 92.2770 Indian rupees)

(Reporting by Nikunj Ohri and Meenakshi Maidas in Bengaluru; Editing by Krishna Chandra Eluri)

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, March 9 (Reuters Breakingviews) - A dealmaking boom in India's banking sector has an unlikely loser: the government. Canadian insurance holding firm Fairfax Financial FFH.TO leads the race to buy a 61% stake from Indian state entities in $13 billion IDBI Bank IDBI.NS, Bloomberg reported in February, citing sources. An $8 billion transaction would be the largest-ever foreign direct investment in a local bank. But crystallising a premium valuation looks challenging.

A deal would complete a full circle for the lender hardest hit by an asset quality crisis: in 2018, bad loans comprised nearly one-third of its portfolio. Provisions for that sour pool eroded its capital base and prompted New Delhi, which then owned 86% of IDBI, to press state-backed Life Insurance Corporation LIFI.NS to pump in 216 billion rupees, or $2.4 billion at current rates, to raise its 8% stake to 51% in 2019.

LIC now holds 49% of IDBI's shares and the government owns 45%. Selling a 30% stake to Fairfax at the latest market price would fetch the insurer a 136% return on its 2019 investment. New Delhi would be worse off, though: the lender's shares trade lower than they did 13 years ago.

Yet even current multiples may be difficult to fetch. IDBI's shares are trading at about 2 times forward book value, almost twice that of similar-sized rivals Yes Bank YESB.NS and IDFC First Bank IDFB.NS. Throwing in employee liabilities, restructuring costs and the likely absence of indemnity clauses gives the buyer a strong case for a discount.

An abundance of takeover targets has hurt New Delhi, too. Launched in 2022, the slow-moving sale process of IDBI prompted early potential bidders to look elsewhere: last year Sumitomo Mitsui Banking Corporation 8316.T bought a 24% stake in Yes Bank.

With Emirates NBD ENBD.DU still in the reckoning with Fairfax, it's a two-horse race to own IDBI. Both bidders already have a foothold in India's credit market: the Dubai-headquartered lender is set to take control of the $2 billion RBL Bank RATB.NS and Fairfax owns $675 million CSB Bank CSBB.NS.

That chips away at any shred of bargaining power left with the sellers, who can hardly demand a control premium. Regulations cap voting rights of private bank shareholders at 26%. That puts the new owner effectively at par on voting decisions with LIC and the government, which will hold a combined 34% after the sale. To maximise takings, officials could ask the central bank to relax the voting rule. The other option is to reduce their total stake to well below 26%.

Otherwise, New Delhi risks catching the weak end of India's banking M&A wave.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Fairfax Financial Holdings is the frontrunner to buy a majority stake in IDBI Bank, Bloomberg reported on February 27, citing unnamed people familiar with the matter.

Valuing the 61% stake that the government and the Life Insurance Corporation of India hold in IDBI at the current market price of about $8 billion could make it the biggest foreign direct investment in the country's banking sector, the report added.

(Editing by Antony Currie; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))

March 6 (Reuters) - Yes Bank Ltd YESB.NS:

• APPROVED APPOINTMENT OF VINAY MURALIDHAR TONSE AS MD & CEO (DESIGNATE) OF BANK

  
  

Source text: ID:nBSE1Q733D

Further company coverage: YESB.NS

((Reuters.Briefs@thomsonreuters.com;;))

Feb 26 (Reuters) - Indian lender Yes Bank YESB.NS said on Thursday that it had detected unauthorised transactions in its multi-currency prepaid forex cards.

Here are some details:

• Unauthorised transactions worth about $280,000 were approved on behalf of 5,000 customers on February 24, according to an internal investigation by the bank.

• The payments were routed through 15 merchants in a Latin American country that does not mandate two-factor authentication for e-commerce transactions.

• The bank said it blocked 688 attempted transactions, preventing losses of roughly $100,000.

• Yes Bank has restricted e-commerce transactions originating from the country involved.

• The lender, which issues the cards in partnership with BookMyForex, said it is working with its card network to initiate refunds for affected customers.

(Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema)

((Kashish.Tandon@thomsonreuters.com; 8800437922;))

Feb 4 (Reuters) - Yes Bank YESB.NS said that the Reserve Bank of India on Tuesday approved the appointment of Vinay Muralidhar Tonse as the private lender's MD and CEO for a period of 3 years.

Tonse was managing director (retail business and operations) of State Bank of India SBI.NS till November 30, 2025.

(Reporting by Meenakshi Maidas in Bengaluru)

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))

By Jayshree P Upadhyay

MUMBAI, Jan 23 (Reuters) - India's securities regulator has accused current and former executives at the local units of PwC and EY, among others, of breaching insider trading rules involving a 2022 share sale by Yes Bank YESB.NS, according to a regulatory notice reviewed by Reuters.

The Securities and Exchange Board of India (SEBI) also accused executives at U.S. private equity firms Carlyle Group and Advent International of sharing unpublished price sensitive information related to the deal, in violation of insider trading rules, the notice showed.

Advent, Carlyle, EY, PwC, Yes Bank and SEBI did not respond to requests for comment.

Issued in November, the notice, which has not been reported previously and is not public, alleges two executives at PwC and EY and five other family members and friends made unlawful gains by trading in shares of Yes Bank ahead of its 2022 share offering.

Most of the accused individuals are still serving at their respective firms.

SEBI's notice showed India executives of Carlyle, Advent, PwC, and EY shared unpublished price sensitive information, enabling others to trade on the information. It also accused a former Yes Bank board member of sharing price sensitive information enabling others to trade.

The notice from the regulator followed an investigation into movements in Yes Bank's shares ahead of a July, 2022, share offering, in which Carlyle and Advent bought a combined 10% stake for $1.1 billion.

The shares of the bank opened 6% higher a day after the deal was announced on July 29, 2022.

The accused individuals, along with their companies, are in the process of drafting their responses to SEBI's notice, according to two people familiar with the investigation, who declined to be named due to sensitivity of the matter.

A show cause notice is SEBI's first step after a probe is completed, and is meant to seek responses from accused persons and entities. If upheld, they could face monetary penalties or restrictions under Indian securities regulations.

The regulatory action marks a rare instance in which senior executives at global consultants and private equity firms have been accused of insider trading violations linked to a capital raising deal.

The action also comes against the backdrop of a sharp surge in capital raising by Indian companies, drawing global investors looking to diversify away from the U.S. due to heightened geopolitical tensions.

The regulator has ramped up a crackdown on market manipulation and insider trading over the last few years. In another recent case, SEBI has alleged breaches of insider trading rules by Bank of America's India unit during a fundraising process.

TRADING ON UNPUBLISHED INFORMATION

The notice accuses a total of 19 individuals of insider trading rule breaches. Seven of them traded based on privileged information and four shared those information. It named eight PwC and EY executives for weak compliance processes.

Ahead of the share offer, Advent hired EY for tax advisory services and sought feedback from the firm on Yes Bank's management. Separately, EY Merchant Banking Services was engaged by Yes Bank to conduct valuation work.

Around the same time, PwC was hired by Carlyle and Advent for tax planning and due diligence. SEBI found that executives at both EY and PwC breached confidentiality norms, allowing some individuals to trade Yes Bank shares ahead of the capital raise.

According to the notice, EY failed to place Yes Bank on a sufficiently broad "restricted list", a list of listed companies that executives at a firm are not allowed to trade in.

While staff directly involved in the transaction were barred from trading, others were not, despite having potential access to sensitive information, the notice said.

SEBI said in its notice that this violated a requirement that anyone with access to unpublished price sensitive information must obtain pre-clearance before trading.

SEBI has asked Rajiv Memani, EY India's chairman and CEO, and the firm's chief operating officer to explain why penalties should not be imposed, arguing that EY's internal trading policy did not comply with regulations.

"No restriction was ever imposed on trading or investing in listed companies with which EY was engaged for advisory, consulting, valuation, investment banking or corporate finance services (other than audit)," SEBI said.

In PwC's case, SEBI said the firm did not have a "restricted stock list" for advisory and consulting clients.

(Reporting by Jayshree P Upadhyay; Editing by Ira Dugal, Sumeet Chatterjee and Raju Gopalakrishnan)

((Jayshree.Pyasi@thomsonreuters.com; 9920092491; Reuters Messaging: Twitter: @jaysh88))

** Shares of Indian lender Yes Bank YESB.NS fall 2.47% to 22.88 rupees

** Co reported 55% increase in Q3 profit, helped by a 91% reduction in provisions

** However, brokerages Emkay Securities, Anand Rathi and Citi maintain "sell" on stock

** Anand Rathi says retail stress persists and return on equity remains sub-par, with profit uptick driven largely by provision reduction

** Emkay Securities flags sub-par growth, weak returns profile and elevated valuations, saying credit growth remains "anemic"

** Citi notes efforts to reconstruct non-performing assets and expansion of net interest margin - monitoring Supreme Court hearing on AT-1 bonds case

** Stock on avg rated "sell" by 11 analysts; median PT 18 rupees - LSEG data

** YESB was up 10.2% in 2025

(Reporting by Abhirami G in Bengaluru)

((abhirami.g@thomsonreuters.com))

MUMBAI, Jan 17 (Reuters) - Indian private lender Yes Bank YESB.NS reported a sharp jump in its third quarter profit on Saturday, helped by a drop in provisions for bad loans and other contingencies.

The Mumbai-based bank, in which Japan's Sumitomo Mitsui Banking Corporation 8316.T bought a 24% stake last year, posted a standalone net profit of 9.52 billion Indian rupees ($104.87 million) for the three months ended December, a 55% increase compared with 6.12 billion rupees a year earlier.

The deal marked one of the major overseas investments by a Japanese financial institution as they look to secure new sources of growth after years of rock-bottom interest rates at home.

Profits jumped as the bank reduced provisions for bad loans and other contingencies by 91% to 2.2 billion rupees after a few quarters of building buffers on its balance sheet.

Yes Bank's net interest income rose 10.8% to 24.65 billion rupees compared with 22.23 billion rupees, as domestic loans grew 5.2%. Deposits rose 5.5% in line with loan growth.

Yes Bank's net interest margin, a key measure of a bank's profitability, rose to 2.6% from 2.5% in the previous quarter, as deposit costs started to drop as a result of India's central bank reducing key interest rates by 125 basis points since February 2025.

The lender's asset quality remained stable with gross non-performing asset ratio at 1.5% at the end of December, compared with 1.6% at the end of September.

($1 = 90.6820 Indian rupees)

(Reporting by Ashwin Manikandan and Ira Dugal in Mumbai; Editing by Jacqueline Wong)

((Ashwin.Manikandan@thomsonreuters.com;))

Updates with details

BENGALURU, Jan 14 (Reuters) - India's central bank has granted an "in-principle" approval to Japan's Sumitomo Mitsui Banking Corp (SMBC) for setting up a wholly-owned subsidiary in the country, the regulator said in a statement on Wednesday.

SMBC, which last year picked up a 24% stake in Indian lender Yes Bank YESB.NS, was so far operating in India through a branch. A Indian subsidiary will give the bank greater flexibility in its operations.

A wholly-owned subsidiary is a separate legal entity in India that allows a bank treatment similar to local peers, including freedom to open branches without restriction.

Such a subsidiary's capital is ring-fenced from the parent bank's.

(Reporting by Nishit Navin; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)

((Nishit.Navin@thomsonreuters.com;))

Jan 6 (Reuters) - Yes Bank Ltd YESB.NS:

• YES BANK - GOT NSDL APPROVAL TO TRANSFER DEMAT UNDERTAKING UNDER RETAIL DIVISION OF CO TO YES SECURITIES (INDIA)

Source text: ID:nBSEw25BC

Further company coverage: YESB.NS

((Reuters.Briefs@thomsonreuters.com;))

Jan 1 (Reuters) - Yes Bank Ltd YESB.NS:

• GETS JAO ORDER WITH DETERMINED INCOME-TAX REFUND OF 3.45 BILLION RUPEES

Source text: ID:nNSE91gkpy

Further company coverage: YESB.NS

((Reuters.Briefs@thomsonreuters.com;;))

Adds Shriram Finance shares in paragraph 2, background on deal from paragraph 4

TOKYO, Dec 15 (Reuters) - Japan's Mitsubishi UFJ Financial Group 8306.T is in final talks to acquire a 20% stake in Indian non-bank financial institution Shriram Finance SHMF.NS for more than 500 billion yen ($3.22 billion), Bloomberg News reported on Monday.

MUFG is planning to announce the acquisition this week, Bloomberg said, citing multiple sources familiar with the matter. The news sent shares of Shriram Finance up as much as 2.7% to an intraday high.

The final acquisition price will depend on Shriram Finance's share price movement and so may exceed 500 billion yen, the report said.

MUFG declined to comment, while Shriram Finance did not immediately respond to Reuters' request for comment.

Facing a shrinking domestic market and years of rock-bottom interest rates, Japan's biggest banks have for years sought out overseas targets.

Rival Sumitomo Mitsui Banking Corporation 8316.T holds a 24.2% stake in Indian private sector lender Yes Bank YESB.NS.

India's business news daily Economic Times was the first to report MUFG's talks for a 20% stake in Shriram Finance in October. The following month, Shriram Finance told the country's stock exchanges that reports of a stake sale were "factually incorrect".

Nonetheless, its shares have risen 41% since the beginning of October.

In its latest quarterly results, Shriram Finance beat profit estimates on the back of steady demand for loans for used trucks.

($1 = 155.1500 yen)

(Reporting by Satoshi Sugiyama and Anton Bridge in Tokyo and Nandan Mandayam in Bengaluru
Editing by Bernadette Baum, Kirsten Donovan)

((Anton.Bridge@thomsonreuters.com;))

By Nikunj Ohri

NEW DELHI, Oct 27 (Reuters) - India is planning to allow direct foreign investment in state-run banks of up to 49%, more than double current limits, according to a person directly involved in the policy discussions.

The finance ministry has been discussing the matter with the Reserve Bank of India (RBI), the country's banking sector regulator, over the past couple of months, said the person, adding that the proposal has yet to be finalised.

Foreign interest in India's banking industry is on the rise as evidenced by Dubai-based Emirates NBD's ENBD.DU recent $3 billion purchase of a 60% stake in RBL Bank RATB.NS and Sumitomo Mitsui Banking Corp's $1.6 billion acquisition of a 20% stake in Yes Bank YESB.NS which the Japanese lender later raised by another 4.99%.

State-run banks are also seeing interest from overseas investors and raising the foreign ownership limit will help them gain more capital in the coming years, the person said.

NARROWING THE GAP

A second source confirmed a hike from the current cap of 20% is under discussion, adding that the move is also part of an attempt to narrow the gap between regulations for government-owned and private banks. India allows foreign ownership of up to 74% for private lenders.

The proposal to increase the cap for state-run banks to 49% has not been previously reported.

Both sources declined to be identified as discussions are not public. India's finance ministry and the RBI did not immediately respond to Reuters' emails seeking comments.

India's robust economic growth - averaging 8% over the past three fiscal years - has led to rising demand for credit, increasing the attractiveness of the country's lenders. Deals in India's financial sector jumped 127% to $8 billion between January to September.

TWELVE BANKS

India has 12 government-owned banks, with combined assets of 171 trillion rupees ($1.95 trillion) as of March that account for 55% of the banking sector.

The government plans to retain a minimum shareholding of 51% in state-run banks, according to the first source. At present, the government has much higher ownership in all 12 banks.

Current foreign ownership in state-run banks ranges from a high of about 12% in Canara Bank CNBK.NS to near zero in UCO Bank UCBK.NS as of September 30, according to data from stock exchanges.

In general, state-run banks are viewed as weaker than their private peers. Often tasked with providing credit to less affluent sections of society and opening branches in the hinterlands, the banks have been more prone to bad loans and have had weaker returns on equity.

KEEPING SAFEGUARDS

The RBI has taken a number of steps in the past few months to reduce and ease regulations in the banking sector, while becoming more open to allowing foreign banks to own larger stakes in Indian private lenders.

But certain safeguards will stay to avoid arbitrary control and decision-making, the first source said, adding that a cap on voting rights of 10% for a single shareholder will remain in place.

($1 = 87.8950 Indian rupees)

(Reporting by Nikunj Ohri in New Delhi; Additional reporting by Gopika Gopakumar in Mumbai; Editing by Edwina Gibbs)

((nikunj.ohri@thomsonreuters.com; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))

Rewrites, adds details throughout

Oct 24 (Reuters) - Blackstone will invest about $705 million in India's Federal Bank FED.NS for a 9.9% stake, the private lender said on Friday, adding to the growing list of large deals by marquee investors.

The deal will make the private equity firm the largest shareholder in the bank.

Dealmaking in Indian private banking space has picked up pace this year. Last week, Dubai-based bank Emirates NBD purchased a 60% stake in RBL Bank RATB.NS for $3 billion. Japan’s Sumitomo Mitsui Banking Corporation SMBC bought a 20% stake in Yes Bank YESB.NS in May and then an additional 4.2% in September.

Blackstone will invest in Federal Bank through a Singapore-based affiliate that has entered a share-purchase agreement with the bank, which includes the right to nominate a non-executive director to its board.

The deal will be executed through preferential equity shares and warrants, and is subject to approval from shareholders and the banking and competition regulators.

Federal Bank's shareholders will meet in a so-called extraordinary general meeting on November 19 to approve the preferential share issue and board seat.

Shares of lender rose 1.15% to 229.00 rupees in Mumbai.

The bank, which has a loan book of 2.44 trillion rupees, posted a 9.6% decline in its net profit to 9.55 billion rupees for the September quarter due to a decline in treasury income and a rise in funds kept aside for bad loans.

($1 = 87.8950 Indian rupees)

(Reporting by Ashwin Manikandan and Manvi Pant; Editing by Janane Venkatraman and Mrigank Dhaniwala)

((Manvi.Pant@thomsonreuters.com; +918447554364;))

Oct 3 (Reuters) - Yes Bank Ltd YESB.NS:

• LOANS & ADVANCES AS OF SEPT 30 UP 6.5% Y/Y

• DEPOSITS AS OF SEPT 30 UP 7.1% Y/Y

Source text: ID:nNSE9LGTpL

Further company coverage: YESB.NS

((Reutersbriefs@thomsonreuters.com;))

Adds Shriram Finance filing saying media report was 'speculation' in paragraph 6 and shares move in paragraph 10

Oct 1 (Reuters) - Japan's Mitsubishi UFJ Financial Group 8306.T is in advanced talks to buy a 20% stake in Indian non-banking finance company Shriram Finance SHMF.NS for 232 billion rupees ($2.61 billion), the Economic Times reported on Wednesday, citing people familiar with the matter.

A deal would mark the latest move by a Japanese financial institution to acquire a stake in an Indian firm, following the banking arm of rival Sumitomo Mitsui Financial Group 8316.T building a 24.2% holding in Mumbai-based Yes Bank YESB.NS.

Facing a shrinking domestic market and years of rock-bottom interest rates, Japan's biggest banks have enthusiastically sought out targets overseas over many years.

MUFG - Japan's largest lender by assets - owns a 23.62% stake in Wall Street investment bank Morgan Stanley MS.N.

The Japanese bank declined to comment on the report, while Shriram Finance did not immediately respond to a Reuters request for comment.

Shriram Finance, in an exchange filing on September 30, said it had received a media query regarding a potential majority stake sale and dismissed the report as speculation. It said it had no knowledge of any deal or any shareholder intent to sell.

The investment will be through a primary issuance via a preferential allotment and will not entail any secondary sale of shares, the newspaper said, adding that both MUFG and Shriram Finance have signed an exclusivity agreement on negotiations.

The Tokyo-based banking leader is, however, not averse to taking a higher stake in the company or even a controlling interest, over time, the report said.

Shriram Finance reported an 8.8% year-on-year rise in standalone profit of 21.56 billion rupees for the quarter ended on June 30. Its results were slightly below the analysts' average estimate of 21.91 billion rupees, according to data compiled by LSEG.

Shriram Finance shares listed on the National Stock Exchange of India rose 3.5% on Wednesday after the Economic Times report.

($1 = 88.8040 Indian rupees)

(Reporting by Gnaneshwar Rajan, Mrinmay Dey, Yagnoseni Das in Bengaluru and Anton Bridge in Tokyo; Editing by Subhranshu Sahu, Muralikumar Anantharaman and Tom Hogue)

((Gnaneshwar.Rajan@thomsonreuters.com;))

Adds context in paragraph 2, details on alliance and analyst comment in paragraphs 5-9.

By Anton Bridge

Sept 19 (Reuters) - Japan's Sumitomo Mitsui Banking Corp, the banking arm of Sumitomo Mitsui Financial Group 8316.T, will invest a further 135 billion yen ($912.84 million) in U.S. investment bank Jefferies JEF.N, the companies said in a statement on Friday.

The move deepens the firms' alliance, which dates from 2021, and comes after SMBC raised its holding in India's Yes BankYESB.NS this week, as it and other Japanese institutions seek out opportunities overseas.

The investment will take SMBC's stake to up to 20% from 14.5%. The two companies will also set up a joint venture in Japan to consolidate their wholesale Japanese equities businesses, the statement said.

The new entity will oversee the firms' equity capital markets operations, research and sales and trading from a target launch date of January 2027.

As the Japanese stock market is booming with larger deal sizes, more global deals and increased capital flows from overseas, the alliance with Jefferies will allow SMFG's securities arm - SMBC Nikko - to better meet issuer and investor demand, SMBC Executive Officer Takashi Morita told a press briefing.

STAKE EXPECTED TO BOOST PROFIT BY FIFTH YEAR

The bank estimates the Jefferies stake will contribute 50 billion yen to profit by the fifth year, of which 10 billion yen would come from the equity joint venture.

"SMBC Nikko may be able to get more inbound M&A interest from U.S. financial firms where it may not have the trusted relationships in the U.S. that Jefferies does," said Travis Lundy, an analyst who publishes on Smartkarma.

"More perhaps it gets SMBC a potentially much better seat at the table for providing LBO financing," Lundy added.

SMBC will provide Jefferies with $2.5 billion of new credit facilities to be used for leveraged lending in EMEA and pre-listing lending in the United States, the statement added.

SMFG, Japan's second largest banking group, started working with Jefferies in 2021 on cross-border mergers and acquisitions and leveraged finance. It first took a stake in 2023, and has since raised it multiple times.

Nothing has been decided with regard to further investment in the future, SMBC's Morita said.

SMBC is not the only Japanese bank to secure a foothold in the U.S.

Larger rival Mitsubishi UFJ Financial Group 8306.T invested in Morgan Stanley MS.N in 2008 and currently holds a 23.62% shareholding, while number three player Mizuho Financial Group 8411.T acquired U.S. M&A advisory Greenhill in 2023.

(Reporting by Gnaneshwar Rajan in Bengaluru, Anton Bridge in Tokyo and Kane Wu in Hong Kong; Editing by Kirsten Donovan and Sharon Singleton)

((Gnaneshwar.Rajan@thomsonreuters.com;))

Sept 18 (Reuters) - India's federal investigating agency said on Thursday it has filed chargesheets in cases connected to "fraudulent" transactions between Anil Ambani's companies, Yes Bank YESB.NS and firms owned by the lender's former top boss.

Central Bureau of Investigation (CBI) said that Yes Bank invested over 50 billion rupees ($567.21 million) in two Ambani-controlled companies in 2017, with approval from the bank's former CEO Rana Kapoor, despite rating agencies flagging financial risks.

The agency said the funds were later siphoned off, demonstrating a systematic diversion of public money.

CBI said that Kapoor "abused" his position to channel Yes Bank's funds into financially troubled Ambani group firms, which in return extended concessional loans to companies linked to Kapoor's family.

The arrangement resulted in a loss of 27.97 billion Indian rupees ($317.29 million) to Yes Bank and led to unlawful gains for Ambani's firms and the companies linked to Kapoor's family, CBI said.

Anil Ambani's spokesperson and Rana Kapoor did not immediately respond to Reuters' requests for comment.

($1 = 88.1540 Indian rupees)

(Reporting by Nishit Navin; Editing by Shinjini Ganguli)

((Nishit.Navin@thomsonreuters.com;))

Adds details from release and context.

TOKYO, Sept 17 (Reuters) - The banking arm of Sumitomo Mitsui Financial Group 8316.T has agreed to buy an additional 4.2% stake in India's Yes Bank YESB.NS from an affiliate of Carlyle Group CG.O for 51 billion yen ($349 million), it said on Wednesday.

Sumitomo Mitsui Banking Corporation, Japan's second-largest lender by assets, also said it had now completed its acquisition of an initial 20% stake in the Mumbai-based bank, in a deal first announced in May.

SMBC had received approval from India's central bank to buy up to 24.99% of Yes Bank in August, and India's competition regulator approved the purchase earlier this month.

State Bank of India SBI.NS, in a separate disclosure, said it has received 88.89 billion rupees ($1 billion) from the completion of the sale of its 13.19% stake in Yes Bank to SMBC.

SMBC also sold its entire 1.65% stake in Indian private-sector commercial bank Kotak Mahindra Bank KTKM.NS as of September 10 in order to "rebalance its strategic investment portfolio," it said.

SMBC had acquired part of its initial 20% stake in Yes Bank from Kotak Mahindra Bank.

($1 = 146.2800 yen)

($1 = 87.8340 Indian rupees)

(Reporting by Anton Bridge
Editing by Mark Potter and Joe Bavier)

((Anton.Bridge@thomsonreuters.com;))

** Shares of Yes Bank YESB.NS climb 3% to 20.14 rupees

** Private sector bank set for best day since early June, if gains hold

** On Tuesday, competition regulator approved Sumitomo Mitsui Banking Corporation's stake purchase in YESB

** SMBC signed a deal in May for a 20% stake, has RBI approval to purchase total 24.99% stake

** Nine analysts tracking stock rate it "sell" on average; median PT is 17 rupees - data compiled by LSEG

** YTD, stock turns positive, last up almost 3%

(Reporting by Nandan Mandayam in Bengaluru)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))

Sept 2 (Reuters) - India's competition regulator said on Tuesday it had approved Japanese company Sumitomo Mitsui Banking Corporation's stake purchase in Indian lender Yes Bank YESB.NS.

SMBC in May had inked a deal to take a 20% stake in Yes Bank for $1.6 billion, making it the largest cross-border merger and acquisition deal in India's financial sector.

(Reporting by Nishit Navin; Editing by Shreya Biswas
)

((Nishit.Navin@thomsonreuters.com;))

** Indian lender Yes Bank YESB.NS gains as much as 4.8%; last up 2.3% at 19.8 rupees

** Japan's Sumitomo Mitsui Banking Corporation (SMBC) SUMFDS.UL gets Indian central bank nod to buy up to 24.99% of Yes Bank

** SMBC inked deal to buy 20% stake in YESB for $1.6 billion in May; Reuters reported in July, citing sources, that SMBC was seeking approval to buy an additional 4.9% in YESB

** Stock set for best day since early June

** YESB is rated "sell" on avg, median PT is 17 rupees - data compiled by LSEG

** Stock is up 1.1% so far in 2025

(Reporting by Manvi Pant in Bengaluru)

((Manvi.Pant@thomsonreuters.com; +918447554364;))

MUMBAI, Aug 23 (Reuters) - Japan's Sumitomo Mitsui Banking Corporation SUMFDS.UL has received Indian central bank approval to buy up to 24.99% of India’s Yes Bank YESB.NS, the Indian bank said in a stock exchange filing on Saturday.

The Reserve Bank of India has also decided that SMBC would not be treated as a "promoter" of Yes Bank following the deal, which would have involved additional regulatory requirements, Yes Bank said.

In May, the banks informed exchanges that SBMC had inked a deal to take a 20% stake in Yes Bank for $1.6 billion, making it the largest cross-border merger and acquisition deal in India's financial sector.

Sources familiar with the matter told Reuters last month that SMBC was seeking approval to buy an additional 4.9% stake in Yes Bank.

(Reporting by Jayshree P Upadhyay
Editing by Mark Potter)

((Jayshree.Pyasi@thomsonreuters.com; 9920092491; Reuters Messaging: Twitter: @jaysh88))

Adds comments from Reliance Group source in paragraphs 5-6, government source in paragraphs 18, 19

By Nikunj Ohri

NEW DELHI, July 24 (Reuters) - India's financial crime-fighting agency searched 35 locations linked to Reliance Anil Ambani Group as part of an investigation into alleged money laundering and siphoning of public funds, a government source said on Thursday.

The Enforcement Directorate alleges the group orchestrated a "well-planned" scheme to siphon off 30 billion rupees ($350 million) in loans from YES Bank YESB.NS to many shell companies between 2017 and 2019, the source said on condition of anonymity, as he was not authorised to speak to the media.

Anil Ambani's Reliance Group entities are accused of paying bribes to YES Bank officials before loans were disbursed, the source said, adding that loan approvals violated the bank’s processes.

The probe also found gross violations in YES Bank’s loan approval process, such as lending to companies with weak financials, backdating credit memos, "evergreening" loans - issuing fresh loans to avoid labelling assets as non-performing - and misrepresenting financials.

A Reliance Group source said YES Bank had granted loans to Anil Ambani's entities after following the due process, and the entire exposure was fully secured.

The allegation that bribes were given to secure loans was incorrect, the source said, adding that Reliance Home Finance (RHFL) extended fully secured loans on merit to privately-held companies of Rana Kapoor, the erstwhile promoter of YES Bank.

These loans were fully repaid, including interest, the source said.

Representatives for Reliance Group and YES Bank did not respond to requests for comment.

Several group firms of Anil Ambani, the younger brother of billionaire Mukesh Ambani, have gone into bankruptcy since 2017.

YES Bank, from which Anil Ambani group firms had borrowed heavily, was declared insolvent in 2020 and rescued by a group of Indian lenders in a plan approved by the central bank. Japan's Sumitomo Mitsui Banking Corp is seeking a 20% stake in a deal that has yet to get regulatory approval.

Kapoor was charged with bank fraud by the financial crime agency in 2020 and later arrested. He pleaded not guilty and was granted bail in 2024 by a special court in India's financial capital of Mumbai, according to local media reports.

REGULATORY ACTIONS

The financial crime agency can now seize or attach assets of Anil Ambani entities as the "proceeds of crime", said Debopriyo Moulik, a lawyer at India's Supreme Court. However, the group companies can challenge the agency's findings in court, he said.

Anil Ambani's group entities have been subject to several regulatory actions in recent years. In August 2024, the markets regulator SEBI barred Anil Ambani and 24 others from securities markets for five years, citing fund diversion from Reliance Home Finance.

The markets regulator has shared findings of its investigation on Reliance Home Finance with the financial crime agency, which is likely to investigate a sharp rise in corporate loans granted by the finance company, the source said.

Shares of Reliance Infrastructure RLIN.NS and Reliance Power RPOL.NS fell as much as 5% on Thursday after the news of the latest probe.

The companies issued similar statements to Indian stock exchanges saying the agency's actions "have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders" of the two companies.

"The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old," the statements said.

However, the government source said the agency's investigation found Reliance Infrastructure diverted over 100 billion rupees disguised as inter-corporate deposits (ICD) to other Reliance group entities through an undisclosed, but related entity. ICDs are unsecured loans extended by one company to another.

An undisclosed related entity was used to bypass approvals from shareholders and the audit committee, the source said. The Reliance Group did not immediately respond to a separate Reuters' request seeking a comment on these allegations.

Reliance Group's businesses range from defence to power and infrastructure, although Ambani himself is not on the boards of any listed entities, following orders passed by the market regulator, which Ambani has challenged.

($1 = 86.3300 Indian rupees)

(Reporting by Nikunj Ohri in New Delhi; Writing by Shubham Batra; Editing by William Mallard and Rachna Uppal)

((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.

By Shritama Bose

MUMBAI, July 22 (Reuters Breakingviews) - State Bank of India SBI.NS looks like it's about to become a more frequent capital raiser. This week the country's largest lender, which is 57%-owned by New Delhi, sold 250 billion rupees ($2.9 billion) worth of shares. The rationale was to increase its equity ratios. Yet, even though the deal is India's largest-ever secondary stock placement to institutions, it hardly moves the needle. Ideally, a company wanting to bolster its balance sheet would trim dividends first. But the government wants state-run companies to bump up these payments by 25%.

Oddly, the bank doesn't appear to need to increase its capital. At 10.8%, its common equity Tier 1 (CET1) ratio is above the regulatory minimum of 8.8%. SBI Chair C.S. Setty said in May the bank has enough "firepower" as it stands to grow its loan book by up to 8 trillion rupees ($93 billion), or 19%.

The issue seems to be that SBI's CET1 ratio is below the 14% average for the Indian banking sector and even further behind the 16% and 18% buffers at privately held peers ICICI Bank ICBK.NS and HDFC Bank HDBK.NS. Since both those rivals trade at higher multiples to book than SBI, there's some logic to wanting to catch up.

The share sale doesn't get it very far, though. SBI has some $421 billion of risk-weighted assets, so the extra $2.9 billion only takes its CET1 ratio to 11.5%.

The additional capital has another effect of reducing the lender's return on equity: apply it to the most recent financial year, and the 17% ROE, per LSEG, would drop by just under a percentage point. That would, on paper, still leave it besting HDFC's 14% showing and lagging ICICI's 18%. But both are cranking out those numbers with much higher capital. Moreover, SBI's ROE is looking harder to sustain with bank credit growing at just over 9%, its slowest pace in three years.

Perhaps Setty and his executives are comfortable with only slightly narrowing its capital gap to peers. Assuming they're not, they have two options: sell more shares or sell more assets. Earlier this year, for example, SBI offloaded a 13% stake in Yes Bank YESB.NS to Sumitomo Mitsui Financial Group 8316.T. The lender could follow that up with peddling its remaining 11% chunk in Yes, or selling or listing its general insurer and its asset management subsidiary.

That'll keep SBI and its bankers busy for a while.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

State Bank of India on July 21 said it had completed a sale of shares worth 250 billion rupees ($2.89 billion) to institutional investors. Books were covered 4.5 times, and foreign long-term investors bought 24% of the float, the lender said.

SBI priced the issue at 817 rupees per share, a 1.8% discount to the closing price of 831.70 rupees on July 16, IFR reported on July 18, citing unnamed people with knowledge of the transaction.

Demand for the transaction was led by domestic institutions, with state-backed Life Insurance Corporation of India committing 80 billion rupees, per IFR. Nomura, Marshall Wace, Millennium, HDFC Mutual Fund, Quant Mutual Fund and ICICI Prudential Mutual Fund also participated in the issue, the report added.

(Editing by Antony Currie; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))