Sumitomo Mitsui Banking Corporation (SMBC) agreed on 9 May 2025 to acquire a 20% stake in India's Yes Bank from State Bank of India (SBI) and seven other lenders for a total of Rs 13,483 crore, Yes Bank said in an exchange filing. The transaction requires regulatory and statutory approvals, including from the Reserve Bank of India (RBI) and the Competition Commission of India.
SBI will sell a 13.19% stake for Rs 8,889 crore at Rs 21.50 per share. Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank will together sell 6.81% for Rs 4,594 crore at the same price. After the deal, SBI will hold 10.78% of Yes Bank and the seven private-sector banks will together hold 2.93%.
Yes Bank said the transaction was the largest cross-border investment in India's domestic banking sector. The purchase keeps SMBC's holding below 25%, the threshold that would trigger a mandatory open offer under India's takeover rules.
ROOTS IN THE 2020 RESCUE
SBI and the seven private lenders invested in Yes Bank during its reconstruction in March 2020, when SBI took a 48.21% stake. SBI's holding was later reduced to 23.97%.
SMBC is a wholly owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), Japan's second-largest banking group. “India represents a key market for us, and we see immense long-term potential in its dynamic and fast-growing economy,” SMFG president and group chief executive Toru Nakashima and SMBC president and chief executive Akihiro Fukutome said in a joint statement.
Prashant Kumar, managing director and chief executive of Yes Bank, said the investment “marks a pivotal step in our next phase of growth”. SBI would “continue to remain a valued stakeholder”, he added.