RBI Clears SMBC’s 24.99% Stake in YES Bank

The Reserve Bank of India has approved Sumitomo Mitsui Banking Corporation’s acquisition of up to 24.99% of the paid-up share capital and voting rights in YES Bank Ltd. The nod, valid for one year and announced on 22 August 2025, clarifies that SMBC will not be treated as a promoter, relieving it from additional regulatory obligations .

This follows an earlier agreement, finalised in May 2025, under which SMBC is set to acquire a 20 percent stake from SBI and seven other Indian banks for ₹134.83 billion (approximately $1.58 billion), making it a major shareholder in the private lender 

The balance of the 4.99% represents SMBC’s intention to deepen its investment and strategic presence in the Indian banking sector .

The deal is seen as one of the largest foreign investments in India’s banking sector, signalling restored confidence in YES Bank’s post-crisis turnaround since 2020 

As part of the revamp, this strategic capital injection should strengthen the bank’s governance, financial resilience, and expansion prospects .

The acquisition remains contingent on Competition Commission of India approval and other standard closing conditions.