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# Reserve Bank of India clears SMBC to acquire up to 24.99% of Yes Bank, ruling out promoter classification
- URL: https://www.theglobalbanker.com/reserve-bank-of-india-clears-smbc-to-acquire-up-to-24-99-of-yes-bank-ruling-out-promoter-c/
- Published: 2025-08-23T14:50:00.000Z
- Updated: 2026-09-29T10:59:02.000Z
- Description: The RBI approval, disclosed by Yes Bank, covers the Japanese lender's agreed purchase of a 20% stake from State Bank of India and seven other banks, and remains subject to Competition Commission clearance.
- Author: TGB Editorial Team
- Tags: M&A, Asia-Pacific, #archive

The Reserve Bank of India (RBI) has approved Sumitomo Mitsui Banking Corporation's (SMBC) proposal to acquire up to 24.99% of the paid-up share capital and voting rights of Yes Bank, the Mumbai-based private-sector lender disclosed, citing an RBI letter dated 22 August 2025\. SMBC is the banking arm of Japan's Sumitomo Mitsui Financial Group.

The central bank said SMBC would not be treated as a promoter of Yes Bank following the transaction. The approval is valid for one year from the date of the letter and requires compliance with the Banking Regulation Act, 1949, the Foreign Exchange Management Act, 1999, and applicable lock-in requirements, with the RBI retaining discretion over subsequent transactions. The deal still requires the approval of the Competition Commission of India (CCI), from which SMBC sought clearance for the transaction in June 2025.

#### THE 20% PURCHASE

SMBC agreed in May 2025 to buy a 20% stake in Yes Bank for ₹13,483 crore. The Japanese lender is acquiring 13.19% from State Bank of India (SBI) through a secondary purchase and a combined 6.81% from seven other shareholders: Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.

SBI and the seven banks became shareholders in Yes Bank under the reconstruction scheme put in place in 2020, when the private-sector lender was rescued by a consortium of Indian banks. The RBI approval allows SMBC to hold up to 24.99% of Yes Bank, above the 20% it has agreed to buy from those existing shareholders.