File photo: A drawing board from Sumitomo Mitsui Banking Corporation can be seen outside her branch in Tokyo | Photocredit: Yuya Shino
The Japanese Sumitomo Mitsui Banking Corporation (SMBC) has received the approval of the Bank or India Reserve to acquire up to 24.99 percent of the paid share capital/ voting rights from YES Bank.
RBI has further clarified that SMBC would not be dealt with as a promoter of the bank in accordance with the aforementioned takeover, according to the legal submission of YES Bank. However, SMBC becomes the largest shareholder in the bank.
This approval was received via an RBI letter of 22 August 2025 and is valid for a year from the date of the letter, the bank of the private sector said.
SMBC is a complete subsidiary of Sumitomo Mitsui Financial Group (SMFG), a global financial group with presence in banking, leasing, effects, credit cards and consumer financing. SMFG is the second largest banking group in Japan and the 14th largest worldwide, with a total of $ 2 trillion.
In May 2025, YES Bank informed the stock markets about the proposed acquisition by SMBC of 20 percent shareholding at the bank.
This acquisition will be due to a secondary ring purchase of 13.19 percent interest in the State Bank of India and a total of 6.81 percent interest of seven other shareholders of the Bank – Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI BANK, IDFC First Bank and Kotak Mahindra Bank.
After the aforementioned acquisition, SBI would remain a large shareholder, with an interest of 10.2 percent in Yes Bank.
In a presentation of May 2025 on the acquisition transaction of SMBC said yes, Bank said: “SMBC will have the right to nominate two board members in the Board of Directors of YES Bank. SBI will keep the right to nominate one board member; the other SBI director will immediately resign from the closing date.
“Appointment of the board of directors is subject to the approval of shareholders and RBI and meet fit and correct criteria. SMBC will have preventive rights to maintain its pro-Rata interest in any future capital increase.”
Furthermore, after receiving all legal approvals and completion of the transaction, SMBC Will, and SBI will remain on the CAP table of the bank as public shareholders.
Yes, bank said the transaction will help to stimulate the next phase of growth, profitability and value creation, with the constant parenthood of SBI, the largest bank in India.
Published on August 23, 2025
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