Sumitomo Mitsui Banking Corporation is set to acquire a 24.99% stake in Yes Bank after securing a green signal from RBI on Friday. The Reserve Bank however clarified that the approval — valid for one year — will not categorise SMBC as a “promoter” of Yes Bank. The Japanese bank currently holds a 20% stake in Yes Bank that was finalised in May 2025 through secondary share purchases.
“We are pleased to inform that SMBC has received the approval of the Reserve Bank of India to acquire up to 24.99% of the paid-up share capital/ voting rights of the Bank vide letter dated August 22, 2025. This approval is valid for one year from the date of this letter. RBI has further clarified that pursuant to the said acquisition, SMBC would not be treated as a promoter of the Bank,” a regulatory filing clarified.
The Japanese bank had inked a deal in May to acquire a 20% stake in the private lender for $1.6 billion. It later sought RBI approval for an additional 4.9% stake in Yes Bank. The plan involved SMBC purchasing a 13.19% stake from the State Bank of India and a 6.81% stake from seven other private banks — subject to regulatory approvals from the Competition Commission of India. The purchase was valued at approximately $1.6 billion and the updated deal is set to become the biggest foreign investment in an Indian bank till date.
Details of the deal
- SMBC has already purchased a 13.19% stake from the State Bank of India. It also holds a 6.81% stake acquired from seven other private banks — Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
- The Japanese multinational banking financial services institution has now received RBI approval for a 4.9% additional stake in Yes Bank.
- The RBI has said that SMBC will not be considered a “promoter” of Yes Bank — meaning it won’t have control over day-to-day decisions.
- SMBC will be able to nominate two directors to Yes Bank’s board. This will help it influence but not control the bank.
- The deal will need approval from the Competition Commission of India before it is finalised.
Yes Bank sees profit jumps 59% in Q1FY26
Yes Bank had shown significant financial improvements during the first quarter of FY26 — recording a 59.4% Year-on-Year profit growth. The private sector bank reported a profit of Rs 801 crore in Q1FY26 while total income stood at Rs 9348.11 crore during the same period. The bank posted a 4.82% YoY growth in its total income in the first quarter of FY26.