Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has secured approval from the Reserve Bank of India (RBI) to acquire up to 24.99% stake in India’s private lender Yes Bank, according to a stock exchange filing on Saturday.
The move marks a significant milestone for Yes Bank, which has been on a turnaround path following its restructuring in 2020. The RBI’s nod paves the way for one of Japan’s largest financial institutions to deepen its footprint in India’s fast-growing banking sector.
Strategic Significance
With this proposed acquisition, SMBC is looking to strengthen its presence in India, one of the world’s fastest-growing economies. A nearly 25% stake would make the Japanese bank a major shareholder in Yes Bank, potentially bringing capital support, operational expertise, and international banking practices.
For Yes Bank, the deal could provide a strong boost to its balance sheet, help improve capital adequacy, and accelerate its lending capabilities across retail, corporate, and digital banking.
Background
Yes Bank, once facing severe financial distress, has steadily worked on restoring investor confidence. Backed by capital infusions from State Bank of India and other financial institutions, the bank has improved asset quality and profitability in recent years.
SMBC, part of the Sumitomo Mitsui Financial Group, is the second-largest bank in Japan and has a global presence across corporate, investment, and retail banking services. Its interest in Yes Bank underscores India’s growing appeal as a strategic market for global financial institutions.