Sumitomo Mitsui Financial Group¡¯s banking unit agreed to buy a 20% stake in Indian lender Yes Bank for about 135 billion rupees ($1.58 billion), as Japanese firms continue their expansion in the world¡¯s most-populous country.
Sumitomo Mitsui Banking Corp. will acquire shares from State Bank of India and other investors for about 21.50 rupees each to become the top shareholder, according to a stock exchange filing Friday. Yes Bank shares surged this week after Bloomberg News reported the Japanese bank was in talks for a minority stake, and last traded at 20.02 rupees in Mumbai.
The Sumitomo Mitsui deal marks the biggest foreign investment in India¡¯s banking sector, and is the latest move by Japanese lenders to expand in the country. India¡¯s $4 trillion domestic-focused economy is seen better able to withstand a global recession than many other nations. The U.S. trade war is also shining a spotlight on India as an alternative manufacturing hub to China.
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