Yes Bank’s $5 Billion Stake Draws Big Names from Middle East and Japan – First Abu Dhabi Bank, Mitsubishi UFJ, and Sumitomo Mitsui Eye Major Investment

First Abu Dhabi Bank PJSC is considering buying a $5 billion stake in India’s Yes Bank Ltd., according to insiders. This Middle Eastern bank is looking at acquiring up to 51% of Yes Bank. Additionally, Japanese banks, including Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc., have shown preliminary interest, though it’s unclear how serious they are about the deal.

Yes Bank’s Recent Performance

Yes Bank shares have risen 16% this year, giving the Mumbai-based bank a value of about $9.4 billion.

Talks are still in early stages, and the size of the stake sale could change. The banks might also decide not to go ahead with the deal, or they might explore other investment options.

Responses from Involved Parties

Representatives for FAB, MUFG, and SMFG declined to comment, and Yes Bank did not immediately respond to a request for comment.

Yes Bank announced this week that it hasn’t received any in-principle approval from the Reserve Bank of India for a 51% stake sale.

Regulatory Approvals and State Bank of India’s Role

State Bank of India (SBI) rescued Yes Bank four years ago and remains its largest shareholder with a 24% stake. However, SBI has reduced its holding over time. The current chairman of SBI, Dinesh Khara, is set to retire in August, which could delay any deal involving Yes Bank. A government panel has recommended Challa Sreenivasulu Setty as his replacement.

Global Investment Trends

Share sales, mergers, and acquisitions are increasing in India as global investors look to benefit from the country’s fast economic growth. Middle Eastern banks like FAB are seeking overseas expansion opportunities, including targets in Turkey, Egypt, and Standard Chartered Plc.

Japanese banks are also looking for deals to boost their lending revenues and expand their investment banking operations. MUFG has shown interest in acquiring a minority stake in HDFC Bank Ltd.’s consumer lending unit.