Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is poised to acquire an additional 4.99% stake, potentially from private equity players Advent International and Carlyle Group, sources told Financial Express.
Path to a Larger Stake
The transaction comes on the heels of RBI’s nod for SMBC to raise its holding to 24.99% from the current 20%.
Together, Carlyle and Advent via their affiliates hold 13.25% stake in YES Bank, as on June 30, 2025.
When contacted Advent International denied any plans of paring their stake in YES Bank to SMBC. An email sent to Carlyle-group remained unresponded at the time of going to press.
Sources indicate that discussions are currently informal and at individual levels. Any board-level engagement would trigger mandatory disclosures to regulators and stock exchanges due to regulatory norms.
Strategic implications and regulatory questions
Apart from PE, SMBC has multilple options to acquire the additional stake. They can tap the Indian market as well as banks.
SMBC had earlier committed Rs 13,483 crore to acquire a 20% stake in YES Bank. This included 13.19% from State Bank of India (SBI) and 6.81% collectively from seven other banks—Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC FIRST Bank, and Kotak Mahindra Bank.
Sources at State Bank of India said India’s largest lender does not plan to reduce its stake any further after the recent 13.19% stake sale. Currently SBI holds 10.77% in YES Bank
While SMBC’s acquisition of up to 24.99% in YES Bank does not trigger a mandatory open offer under current SEBI norms, but the latest tranche could signal a calibrated push toward strategic influence, raising fresh questions around voting rights, regulatory thresholds and long-term intent.
” We have to still understand whether this 25% shareholding comes with the capped voting rights or with full voting rights,” said banking analyst.