Japan’s SMBC to Become Largest Shareholder in YES Bank, Wants to purchase 51% Stake

In a major development in India’s banking sector, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has signed a deal to acquire a 20% stake in YES Bank, making it the largest shareholder in the private lender. This investment includes purchasing 13.19% stake from the State Bank of India (SBI) and 6.81% from seven other Indian banks that had supported YES Bank during its 2020 restructuring.

Despite the share transfer, SBI will continue to hold more than 10% stake and remain a key stakeholder in YES Bank.

Japan’s financial conglomerate Sumitomo Mitsui Banking Corporation (SMBC) is expected to meet Reserve Bank of India (RBI) officials this week to formally make an application to acquire a 51 percent stake in Yes Bank. As per sources, the application will be furnished in a day or two after a round of meetings.

Reviewing such applications usually take about 90 days and it is estimated that by August or September this year, regulatory clearances are likely to come through for SMBC to acquire a controlling stake in Yes Bank.

As per sources, SMBC is believed to have agreed to cap its voting rights in Yes Bank at 26 percent, while it would hold a controlling 51 percent stake in the it.

A Big Move in Indian Banking

The transaction marks one of the largest foreign investments in India’s banking industry and is currently awaiting approvals from both the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).

SMBC, a core company of Sumitomo Mitsui Financial Group (SMFG), is one of Japan’s leading financial institutions with global assets of around $2 trillion. The group already has a presence in India through SMFG India Credit Company, a major non-banking financial services provider.

YES Bank CEO Welcomes SMBC

YES Bank MD & CEO Prashant Kumar described SMBC’s investment as a “pivotal step” in the bank’s next phase of growth. He expressed gratitude to SBI for its support over the years and welcomed SMBC as a global partner that will bring international expertise and high governance standards to the table.

“We are excited to welcome SMBC, a globally renowned financial partner, as a major shareholder. Their investment marks a significant step in our transformation and growth journey. We believe their global experience will strengthen our capabilities as we enter the next phase of development,” Kumar said.

He also emphasized that SBI remains a valued partner, acknowledging its role in YES Bank’s recovery.

SMBC Sees Long-Term Potential in India

SMFG CEO Toru Nakashima and SMBC CEO Akihiro Fukutome praised India as a vital market and said they were confident in YES Bank’s leadership and future.

“India is a key market for us. YES Bank has shown a strong turnaround and growth in recent years, and we are proud to become its largest shareholder. This move aligns with our strategy to build long-term, value-driven partnerships in fast-growing economies,” they stated.

What This Means for the Future

This deal signals growing global confidence in India’s financial sector and highlights Japan’s increasing interest in expanding its financial footprint in the region. For YES Bank, this investment is expected to provide a major boost in terms of international standards, operational strength, and long-term stability.

With regulatory approvals expected soon, this partnership may mark the beginning of a new era for YES Bank as it aims to strengthen its presence in India’s competitive banking landscape.