Sumitomo Mitsui Banking Corporation too Acquire 20% Stake in Yes Bank, Pending Regulatory Approvals
Mumbai, August 23, 2025 – Sumitomo Mitsui Banking Corporation (SMBC) is moving forward wiht its planned acquisition of a 20% stake in Yes Bank, according to a recent exchange filing by the Indian private sector bank. The deal, initially announced on May 9, 2025, will be executed through a secondary stake purchase. SMBC intends to acquire 13.19% of Yes Bank shares from State Bank of India and a combined 6.81% from seven other shareholders.
These additional shareholders include prominent Indian financial institutions: Axis Bank Limited, Bandhan Bank Limited, federal Bank Limited, HDFC Bank Limited, ICICI Bank Limited, IDFC First Bank Limited, and Kotak Mahindra Bank Limited.
The transaction remains subject to several key conditions. Yes Bank stated that completion hinges on receiving clearance from the competition Commission of India (CCI) and fulfilling standard conditions precedent outlined in the agreements established in May.Any further transactions related to the deal will also require regulatory approval from the Reserve Bank of India (RBI).
This investment by SMBC represents a meaningful growth for yes Bank, which has been working to strengthen its financial position following a period of challenges. The bank has been actively seeking strategic investors to bolster its capital base and support future growth.SMBC’s investment is expected to provide Yes Bank with access to international expertise and a broader network.
Yes Bank’s shares closed at Rs 19.28 on the BSE on Friday,August 22,2025,representing a 0.8% decrease.
Background: Yes Bank’s Recovery and SMBC’s Expansion
Yes Bank faced a severe crisis in 2020,prompting intervention from the RBI and a consortium of banks led by State bank of India to prevent its collapse. A rescue plan was implemented, involving a capital infusion and a change in management. As then, the bank has been focused on restructuring its operations, improving asset quality, and regaining investor confidence.
Sumitomo Mitsui Banking Corporation (SMBC) is a core banking entity of Sumitomo Mitsui Financial Group (SMFG), one of the largest financial groups in Japan. SMBC has been actively expanding its presence in the Indian market, recognizing its growth potential.This acquisition aligns with SMBC’s broader strategy to strengthen its foothold in key emerging economies.
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