New Delhi, Sept 2025 – The Competition Commission of India (CCI) has given its approval to Sumitomo Mitsui Banking Corporation (SMBC) for increasing its equity stake and voting rights in Yes Bank Ltd to nearly 25%, marking a significant development in the Japanese lender’s India strategy.
RBI’s Prior Approval
This clearance follows the Reserve Bank of India’s (RBI) nod on August 23, which allowed SMBC to hike its shareholding in Yes Bank up to 24.99%. The RBI’s approval remains valid for one year, giving SMBC the flexibility to time its additional investment.
Current Shareholding Pattern
SMBC currently owns a 20% stake in Yes Bank, acquired in May 2025 through a secondary market deal. The transaction included a 13.19% stake from the State Bank of India (SBI) and 6.81% from seven other domestic lenders including Axis Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank.
As of June 2025:
- Indian banks collectively hold 33.7% in Yes Bank.
- SBI remains the largest single shareholder with 23.96%.
- Among foreign investors, CA Basque Investments holds 4.22%, while Verventa Holdings owns 9.2%.
Strategic Importance of SMBC’s Move
SMBC, part of the Sumitomo Mitsui Financial Group, already has operations in New Delhi, Mumbai, Chennai, and Gujarat’s GIFT City. The proposed increase in its stake is expected to strengthen Yes Bank’s capital base, enhance bilateral financial cooperation between India and Japan, and support SMBC’s broader push into India’s rapidly expanding banking and financial services sector.
Summary
The CCI’s approval allows SMBC to raise its stake in Yes Bank to nearly 25%, following earlier clearance from the RBI. Already holding 20%, SMBC’s expanded investment will further reinforce Yes Bank’s balance sheet and highlights the growing role of Japanese financial institutions in India’s banking sector.
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