SMBC Secures RBI Approval to Acquire Up to 24.99% Stake in Yes Bank

Yes Bank announced that the Reserve Bank of India (RBI) has approved Sumitomo Mitsui Banking Corporation (SMBC) from Japan to acquire up to a 24.99% stake in the bank. This follows Yes Bank's earlier disclosure on May 9, 2025, about SMBC's plan to purchase a 20% stake through a secondary acquisition.

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The acquisition involves buying a 13.19% stake from the State Bank of India and a 6.81% share from seven other shareholders. These shareholders include Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

Regulatory Approvals and Conditions

Yes Bank stated in a regulatory filing that RBI's approval was communicated via a letter dated August 22, 2025. This approval is valid for one year from the date of the letter. The RBI clarified that SMBC will not be considered a promoter of Yes Bank following this acquisition.

The approval is subject to several conditions, including adherence to the Banking Regulation Act, 1949, and RBI's guidelines on shareholding in banking companies. These guidelines were last updated on January 16, 2023. Compliance with the Foreign Exchange Management Act, 1999, is also required.

Additional Approvals Required

The transaction must also receive approval from the Competition Commission of India (CCI). Additionally, it must meet customary conditions precedents as outlined in agreements mentioned in Yes Bank's May 9, 2025 intimation.

Yes Bank noted that other applicable laws and terms must be followed. These include lock-in periods and any subsequent transactions being subject to RBI's decision and conditions.

This development marks a significant step for Yes Bank as it seeks to strengthen its position with support from SMBC. The collaboration could bring new opportunities for growth and expansion in the banking sector.

With inputs from PTI