File picture: A sign board of Sumitomo Mitsui Banking Corporation is seen outside its branch in Tokyo
| Photo Credit:
Yuya Shino
Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received the Reserve Bank of India’s approval to acquire up to 24.99 per cent of the paid-up share capital/ voting rights of YES Bank.
RBI has further clarified that pursuant to the said acquisition, SMBC would not be treated as a promoter of the bank, according to YES Bank’s regulatory filing. However, SMBC will become the bank’s largest shareholder.
This approval was received through a RBI letter dated August 22, 2025 and is valid for one year from the date of the letter, the private sector bank said.
SMBC is a wholly-owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), a global financial group with presence in banking, leasing, securities, credit cards, and consumer finance. SMFG is the second largest banking group in Japan and 14th largest globally, with total assets of $2 trillion.
In May 2025, YES Bank informed the exchanges regarding the proposed acquisition by SMBC of 20 per cent shareholding in the bank.
This acquisition will be through a secondary stake purchase of 13.19 per cent stake from the State Bank of India and an aggregate of 6.81 per cent stake from seven other shareholders of the bank — Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.
After the aforementioned acquisition, SBI would remain a major shareholder, with 10.2 per cent stake in YES Bank.
In a May 2025 presentation on SMBC’s acquisition transaction, YES Bank said: “SMBC will have the right to nominate two board members on the board of YES Bank. SBI will retain the right to nominate one board member; the other SBI director will resign immediately on the closing date.
“Appointment of the board of directors is subject to shareholder and RBI approval, and meeting Fit and Proper criteria. SMBC will have pre-emptive rights to maintain its pro-rata stake in any future capital raise.”
Further, upon receipt of all regulatory approvals and completion of the transaction, SMBC will, and SBI will continue to be, on the cap table of the bank as public shareholders.
YES Bank said the transaction will help it drive the next phase of growth, profitability and value creation, with the continued parentage of SBI, the largest bank in India.
Published on August 23, 2025
