Japan’s Biggest Bank ‘MUFG Bank’ Likely to Buy SBI’s Stake in Yes Bank

Japan’s biggest bank, MUFG Bank, is close to finalizing a deal to buy a stake in Yes Bank, according to a report by The Hindu Businessline on April 7. This deal would give MUFG ownership in Yes Bank, which is one of India’s private sector banks.

What is the Value of the Deal?

According to the report, if the deal goes through, Yes Bank’s total value (also called market valuation) would be around $6.5 to $7 billion. This means that MUFG would be investing a large amount of money to buy part of the bank.

Who Is MUFG Talking To?

MUFG is mainly in talks with:

• State Bank of India (SBI) – which currently owns the largest share in Yes Bank (23.98%).
• Other institutional investors – these are big companies or organizations that have also invested in Yes Bank.

How Will the Deal Happen?

According to the report:

1. First, MUFG plans to buy SBI’s 23.98% stake in Yes Bank.
2. Later, MUFG may increase its investment and possibly take a majority stake (meaning it could own more than 50% of the bank and have control over major decisions).

If this happens, Yes Bank could become majorly owned or even controlled by MUFG, making it one of the few Indian banks with foreign majority ownership.

How is Yes Bank Performing?

Yes Bank has shown strong financial growth recently:

• In the third quarter of the 2024-25 financial year, it reported a net profit of Rs 612.3 crore.
• This is a 168% increase compared to Rs 231.6 crore profit in the same quarter last year.

Also:

• Its net interest income (NII), which is the income a bank earns from its lending activities, was Rs 2,223 crore.
• This was a 10.2% increase from Rs 1,971 crore in the same period last year.

This shows that Yes Bank is getting stronger financially, which could be one reason why MUFG is interested in investing.