India's Competition Commission granted approval on 2 September 2025 for Sumitomo Mitsui Banking Corporation to acquire up to 24.99% of Yes Bank. Completion of the transaction will make the Japanese lender Yes Bank's single largest shareholder.
The CCI clearance follows a separate approval granted earlier by the Reserve Bank of India, which had already sanctioned SMBC's acquisition up to the 24.99% threshold. Under Indian banking regulation, foreign entities seeking significant ownership positions in domestic banks must satisfy both the competition regulator and the RBI. The two approvals cleared the path for the transaction to move to formal closing.
BACKGROUND
Yes Bank underwent a rescue in 2020, with the RBI and a consortium of Indian financial institutions intervening to stabilise the bank.
SMBC is the banking subsidiary of Sumitomo Mitsui Financial Group, one of Japan's three major banking groups.
SHAREHOLDER STRUCTURE POST-COMPLETION
Completion will make SMBC the bank's single largest shareholder. The 24.99% ceiling is the limit set by the RBI's approval and keeps SMBC just below the 25% level that would trigger a mandatory open offer under India's takeover rules.
The shareholding change also affects the existing consortium of Indian institutions that participated in the 2020 rescue, several of which are selling part of their holdings to SMBC under the deal: State Bank of India is selling a 13.19% stake and seven other lenders a combined 6.81%.
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