Yes Bank Receives RBI Nod For Japan's SMBC To Acquire Up To 24.99% Stake
Yes Bank Ltd. announced on Aug. 23 that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received the official approval from the Reserve Bank of India (RBI) to acquire up to 24.99% stake in the company.
The central bank has also decided that SMBC would not be treated as a "promoter" of Yes Bank following the deal, which would have involved additional regulatory requirements, according to the Mumbai-based private sector lender.
In May, the banks informed the stock exchanges that SBMC had inked a deal to take a 20% stake in Yes Bank for $1.6 billion, 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, Yes Bank 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.
SMBC currently 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. The RBI’s approval to increase SMBC’s shareholding to 24.99% is valid for one year.
