Japanese Lender SMBC's Stake Acquisition In Yes Bank Gets CCI Nod
This comes after SMBC received the RBI's approval to acquire up to 24.99% stake in Yes Bank.
The Competition Commission of India on Tuesday said it has approved the acquisition of certain share capital and voting rights of Yes Bank by Sumitomo Mitsui Banking Corporation.
This has come after Yes Bank on Aug. 23 announced that the Japanese lender has received the official approval from the Reserve Bank of India to acquire up to 24.99% stake in the company.
The central bank decided that SMBC would not be treated as a "promoter" of Yes Bank following the deal, which would have involved additional regulatory requirements. The approval, granted via RBI’s letter dated August 22, 2025, is valid for one year.
In May, Yes Bank had informed exchanges that SMBC had signed a deal to take a 20% stake in the bank, making it the largest cross-border merger and acquisition deal in India's financial sector. Yes Bank clarified that SMBC will not be classified as a promoter despite the increased shareholding.
On May 9, 2025, the private lender disclosed that it, along with its major shareholders, including SBI and other domestic banks, had signed a share purchase agreement with SMBC to facilitate the acquisition of the 20% stake.
As of June 2025, domestic lenders collectively held 33.7% of Yes Bank. SBI remained the largest single shareholder with a 23.96% stake, while foreign investors CA Basque Investments and Verventa Holdings held 4.22% and 9.2%, respectively.
Currently, SMBC holds a 20% stake in Yes Bank, acquired in May 2025 through a secondary share purchase. This comprised a 13.19% stake from State Bank of India (SBI) and a combined 6.81% stake from seven other domestic banks: Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
