SMBC becomes YES Bank’s largest shareholder with 20% stake

Mumbai, 18 September 2025 – Sumitomo Mitsui Banking Corporation (SMBC) has bought a 20% stake in YES Bank by purchasing shares from State Bank of India (SBI) and other banks that had invested in YES Bank during its 2020 Reconstruction Scheme. With this deal, SMBC has become the largest shareholder in YES Bank, while SBI continues to hold over 10%.

As part of the agreement, two SMBC representatives have joined YES Bank’s Board. This move is expected to strengthen governance and open doors for deeper strategic partnerships.

With backing from SMBC and SBI, YES Bank is now in a strong position to enter its next phase of growth. SMBC, part of the Sumitomo Mitsui Financial Group with a global balance sheet of around USD 2 trillion, brings international expertise, while SBI, India’s largest bank, continues to provide trust and stability.

This investment is also the biggest cross-border investment in a private sector Indian bank. YES Bank plans to use SMBC’s global network, especially in Japan–India trade and investment, to expand in corporate banking, treasury, and cross-border services.

YES Bank thanked the Ministry of Finance, RBI, SBI, and other bank investors for their support since 2020, as well as regulatory authorities for enabling smooth completion of the deal. The Bank also acknowledged the efforts of its employees, who helped steer the institution through the Covid-19 crisis and rebuild its foundation for growth.

Adding to this milestone, all four major domestic rating agencies — CRISIL, ICRA, India Ratings, and CARE — have upgraded YES Bank to AA– rating, the highest level since March 2020. These upgrades highlight the Bank’s stronger capital, better governance, and improved performance.

Mr. Prashant Kumar, Managing Director & Chief Executive Officer, YES Bank, said:

“The completion of this transaction is a defining moment for YES Bank. We are privileged to welcome SMBC as our largest shareholder and Board participant. I would also like to express my deepest gratitude to the Ministry of Finance, Government of India, the RBI and SBI for their unwavering support and guidance, and to the other bank investors for their timely capital participation in 2020 and continued support. My heartfelt appreciation goes to our employees, who navigated through testing times, including the Covid-19 pandemic, and build the YES Bank of Today on the foundation of resilience and trust. 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.”