Japanese banking major Sumitomo Mitsui Banking Corporation (SMBC) has completed the acquisition of a 20% stake in Yes Bank, making it the largest shareholder in the private sector lender. The deal was executed through a secondary purchase of shares from State Bank of India (SBI) and a consortium of other Indian banks, Yes Bank announced on Thursday.
This milestone transaction comes a day after SBI confirmed the sale of a 13.18% stake in Yes Bank to SMBC. Following the deal, SBI continues to hold around 10% equity in the bank.
Strategic Shift in Ownership
The stake sale marks the single-largest cross-border investment in an Indian private sector bank, underscoring foreign investor confidence in India’s banking sector. As part of the transaction, two SMBC representatives — Rajeev Veeravalli Kannan and Shinichiro Nishino — have joined Yes Bank’s board.
Yes Bank’s managing director and CEO, Prashant Kumar, welcomed SMBC as the bank’s largest shareholder:
“With the combined sponsorship of SMBC, backed by SMFG’s global scale, and SBI, India’s most trusted bank, Yes Bank is uniquely positioned to grow stronger, expand Japan–India business flows, and deliver long-term value for all stakeholders.”
The bank expects to leverage SMBC’s international network to strengthen corporate banking, treasury operations, and cross-border financial services, particularly in facilitating Japan–India trade flows.
Background of the Deal
- In May 2025, SBI and seven private sector banks announced their plan to divest a 20% stake in Yes Bank for ₹13,482 crore to SMBC.
- SBI sold more than half of its holding, trimming its stake from 24% to about 10%.
- The remaining shares were offloaded by Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
- These lenders had originally acquired stakes in March 2020 during Yes Bank’s reconstruction at approximately ₹10 per share.
The transaction received approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI) earlier this year, paving the way for SMBC’s entry.
Looking ahead, SMBC has regulatory clearance to increase its stake up to 24.99%, and may acquire the additional 4.99% from existing investors such as Advent and Carlyle, or through a preferential allotment by Yes Bank.
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