Upon completion, SMBC will become Yes Bank’s largest shareholder, while SBI will retain over 10 per cent stake. 

The shares of Yes Bank Ltd were trading at ₹20.45 up by ₹0.43 or 2.15 per cent on the NSE today at 10.40 am.

Sumitomo Mitsui Banking Corporation (SMBC) has entered into a definitive agreement to acquire a 20 per cent stake in Yes Bank, marking the largest cross-border investment in India’s banking sector.

The Japanese banking giant will purchase 13.19 per cent from State Bank of India (SBI) and 6.81 per cent from seven other Indian banks that had invested in Yes Bank as part of its reconstruction scheme in March 2020. Upon completion, SMBC will become Yes Bank’s largest shareholder, while SBI will retain over 10 per cent stake.

The transaction, subject to regulatory approvals from the Reserve Bank of India (RBI) and Competition Commission of India (CCI), involves the acquisition of 4,134,404,897 shares from SBI and 2,136,830,297 shares from other selling banks including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank.

Under the shareholders’ agreement, SMBC will gain the right to nominate two non-executive directors on Yes Bank’s board, while SBI will retain the right to nominate one director.

“We are excited to welcome SMBC as a major shareholder whose investment marks a pivotal step in our next phase of growth,” said Prashant Kumar, Managing Director & CEO of YES Bank.

SMBC, a wholly owned subsidiary of Sumitomo Mitsui Financial Group, with approximately $2 trillion in assets, is already among the leading foreign banks in India.

Published on May 12, 2025