SMBC to buy further 4.2% of Yes Bank from Carlyle affiliate

The banking arm of Sumitomo Mitsui Financial Group TSE:8316 has agreed to buy an additional 4.2% stake in India's Yes Bank NSE:YESBANK from an affiliate of Carlyle Group NASDAQ:CG 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 NSE:SBIN, 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 NSE:KOTAKBANK 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)