Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received the RBI’s approval to buy up to 24.99 per cent of Yes Bank, up from the 20 per cent reported earlier, the lender said in a stock exchange filing on Saturday, with the central bank further clarifying that SMBC would not be treated as a promoter of the bank.
The development follows Yes Bank’s disclosure in May about SMBC’s proposed acquisition of a 20 per cent holding in the lender for ₹13,482 crore, in what would be the largest cross-border investment in the Indian banking sector.
The 20 per cent stake sale plan included a secondary stake purchase of 13.19 per cent stake from SBI and 6.81 per cent share from seven other shareholders. The other shareholders are Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.
Sources familiar with the matter told Reuters last month that SMBC was seeking approval to buy an additional 4.9 per cent stake in Yes Bank.
“In this regard, we are pleased to inform that SMBC has received the approval of the Reserve bank of India (RBI)’s to acquire up to 24.99 per cent of the paid-up share capital/ voting rights of the Bank vide letter dated August 22, 2025,” Yes Bank said in a regulatory filing. This approval is valid for one year from the date of this letter, it added.
The approval granted by the RBI is subject to other conditions, including compliance with the relevant provisions of the Banking Regulation Act, 1949, RBI guidelinesand provisions of the Foreign Exchange Management Act, 1999.
Besides, it said, other applicable laws and terms, including lock-in, any subsequent transactions being subject to conditions and the RBI’s decision, among others, have to be followed. Further, the proposed transaction is subject to approval from the Competition Commission of India (CCI) and customary conditions precedents as mentioned in the agreements referred to in our intimation dated May 9, 2025, it added.
SMBC, a scheduled foreign bank in India, is a subsidiary of SMFG, which manages assets of $2 trillion as of December 2024 and has a significant global presence. SMFG also operates SMFG India Credit Company Limited, a diversified NBFC in India.