Tue May 06 07:10:00 UTC 2025: ## Japanese Bank Sumitomo Mitsui to Acquire Majority Stake in Yes Bank
**Mumbai, India –** Sumitomo Mitsui Banking Corp. (SMBC) has received the Reserve Bank of India’s (RBI) approval to acquire a 51% stake in Yes Bank, potentially valuing the Indian lender at $1.7 billion. This marks a significant development in Yes Bank’s history, five years after a bailout by a consortium of Indian banks led by State Bank of India (SBI).
The acquisition will likely occur in phases. SMBC may initially acquire less than 26% through a share swap or an open offer, followed by further purchases to reach the 51% majority. While SMBC’s voting rights will be capped at 26%, ensuring no single entity holds excessive control, this deal allows SBI and other existing shareholders – including Axis Bank, Kotak Mahindra Bank, and HDFC Bank – to exit their investments.
The RBI’s approval comes weeks after SBI and other shareholders agreed to sell their stakes. SMBC is expected to pay cash for the initial stake, with the acquisition price based on market value. The deal provides Yes Bank with a strategic promoter and is seen as crucial for its long-term stability and competitiveness in the increasingly dynamic Indian banking sector.
SMBC has appointed JPMorgan and J Sagar Associates as its financial and legal advisors for the transaction. While SMBC declined to comment, the RBI, SBI, and other involved banks have not yet publicly responded. The RBI is also encouraging SMBC to establish a wholly-owned subsidiary in India to enhance regulatory oversight and shield its Indian operations from potential external crises.
This acquisition follows a similar model to the Catholic Syrian Bank stake sale, where the RBI also allowed a single investor to hold a majority stake with voting rights capped at 26%. The deal represents a key step in Yes Bank’s recovery and sets the stage for a new chapter under its Japanese ownership.
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