Yes, Bank Deal: How SBI and banks have withdrawn and tax free of charge of $ 13,483

SBI and a group of banks are scheduled to put out of tax -free escape from selling 13,483 crores from their share in Yes Bank to Sumitomo Mitsui Banking Corp (SMBC), according to The Economic Times.

The sale of shares, which is expected to conclude in the quarter of September, will receive great gains from banks, without attracting any capital profit tax. This is thanks to a condition in the YES Bank reconstruction system, 2020, which exempt investors who participated in the 2020 rescue plan from these taxes under the income tax law.

SBI will sell 13.19 % of its 24 % share for 8,889 rupees, while seven private banks – including HDFC, ICICI Bank, Axis and Kotak Mahindra Bank – will cancel 6.81 % for 4,594 rupees. The banks originally participated in the bank shares of yes at a price of $ 10 each, and they are now selling for $ 21.50 per share.

According to the report, the revenues will be reserved as an “other income” for banks, which provides a timely payment for profits amid the pressure of the margin and the decrease in the cabinet gains. Without exemption, long -term capital profit tax could have reached 12.5 %. Today’s business cannot verify the report independently, and Yes Bank and SMBC were not released after a statement.

SMBC, the Japanese banking giant, will get a 20 % stake in Yes Bank in this secondary market deal, and she also obtained RBI’s approval to appoint candidates for the bank’s board of directors. RBI has a Greenlit SMBC request to raise its share to 24.99 %, which can be achieved by obtaining more shares from ADVENT and Carlyle or subscribing to new preferential shares.

SMBC is said to have 16,000 rupees in the yes bank through a mixture of stocks and debts.