Mumbai, August 25, 2025 – Shares of YES Bank Ltd are in focus after the Reserve Bank of India (RBI) granted approval to Sumitomo Mitsui Banking Corporation (SMBC) for acquiring up to 24.99% stake in the private lender through a secondary share purchase. Importantly, RBI clarified that SMBC will not be classified as a promoter of the bank.
Details of the Transaction
YES Bank had earlier disclosed that its board approved a share purchase agreement (SPA) with State Bank of India (SBI) and SMBC on May 9, 2025. Under this agreement, SMBC will acquire:
- 13.19% stake (4.13 billion shares) from SBI.
- An additional 6.81% stake through SPAs signed with seven other banks, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
As of June 30, 2025, a total of 12 banks collectively held 33.70% stake in YES Bank, with SBI being the largest shareholder at 23.96%.
Regulatory Approval & Conditions
According to YES Bank’s disclosure, RBI’s approval—issued on August 22, 2025—is valid for one year and subject to compliance with:
- The Banking Regulation Act, 1949
- RBI’s Master Directions on Shareholding in Banks (2023)
- Foreign Exchange Management Act (FEMA), 1999
- Other applicable laws, lock-in requirements, and RBI’s future decisions on subsequent transactions.
The deal will also require approval from the Competition Commission of India (CCI) and the fulfillment of customary closing conditions.
Market Impact
The transaction, once completed, will make SMBC one of the largest shareholders in YES Bank, marking a significant development in the bank’s ownership structure. Industry watchers see this as a potential boost to YES Bank’s investor confidence and long-term strategic positioning.
Disclaimer
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