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 ongoing restructuring, paving the way for the exit of existing shareholders, including State Bank of India (SBI) and other major lenders who bailed out the bank in 2020.

The deal will see SMBC initially acquire less than 26% of Yes Bank through a share purchase, followed by either a share swap or an open offer to increase its stake to 51%. While SMBC’s voting rights will be capped at 26% to prevent excessive control, the RBI’s approval signals confidence in the Japanese bank’s ability to lead Yes Bank’s future.

The acquisition will allow SBI and other shareholders to divest their stakes, ending a five-year period of support following Yes Bank’s near-collapse. The RBI’s approval comes weeks after these banks agreed to sell their shares to SMBC. The transaction is expected to be completed in phases, with initial share purchases from SBI, Axis Bank, Kotak Mahindra Bank, and HDFC Bank, followed by further acquisitions.

SMBC has appointed JPMorgan and J Sagar Associates as its financial and legal advisors. While SMBC declined to comment, analysts believe this acquisition will provide Yes Bank with the strategic promoter and strong leadership it needs for long-term stability and growth in a competitive banking market.

The RBI is also encouraging SMBC to establish a wholly-owned subsidiary in India, a model preferred by the regulator to ensure better oversight and protect Indian operations from potential crises affecting the parent bank. This acquisition follows a similar model to the Catholic Syrian Bank stake sale, where a single investor was allowed majority ownership with voting rights capped at 26%.

The deal concludes a competitive bidding process that also included Mizuho Bank and Emirates NBD. It represents a significant investment by SMBC in the Indian market, reflecting its long-term commitment to growth in the country. SMBC, which started operations in India in 2013, currently has three branches and is expanding its presence.

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