Yes Bank shares were trading over 1% higher after the Reserve Bank of India approved the proposed changes in Articles of Association or the AoA of the bank, according to an exchange filing. The changes are in connection with nomination of two directors on the board by Sumitomo Mitsui Banking Corporation and one director by SBI.
The changes in the board would take effect after Japan-based SMBC acquires stakes of SBI and other seven banks in Yes Bank.
On May 9, Yes Bank had disclosed that SMBC planned to buy 20% through a secondary stake purchase, including 13.19% from State Bank of India and 6.81% from seven other lenders like Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
Earlier this month, the proposed deal got approval of the Competition Commission of India. Last month, the RBI also granted approval for the deal, clarifying that SMBC would not be categorised as a promoter.
