(Reuters) - Japan’s Sumitomo Mitsui Banking Corp (SMBC) plans to invest about 30 billion yen ($338.7 million) in Indian private-sector lender Kotak Mahindra Bank under a capital and business alliance, the Nikkei business daily reported.
SMBC, a unit of Sumitomo Mitsui Financial Group Inc, will acquire a 4.5 percent stake in Kotak Mahindra, aimed at boosting its earnings in the Asian market, the daily said without naming sources.
It will likely purchase Kotak Mahindra shares in August or September, becoming the No. 3 stockholder after the founding family and a U.S. investment company, the Nikkei said.
It said SMBC plans to use the tie-up to strengthen its stock and bond underwriting for Japanese companies raising funds in India, and expand its line-up of Indian investments sold in Japan.
The daily said the two companies were expected to work together in investment banking and asset management businesses as well.
Last week, Dutch financial services group ING sold its entire 3.1 percent stake in Kotak Mahindra Bank.
SMBC has tie-ups with local banks in Hong Kong, Vietnam and Indonesia. In India, it has an alliance with UK giant Standard Chartered Bank in commercial banking operations for Japanese firms, it added.
(Reporting by Ashutosh Joshi in Bangalore; Editing by Don Sebastian)