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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