Sumitomo Mitsui Banking Corporation has signed an agreement to acquire a 20% stake in India's Yes Bank in a transaction valued at USD 1.57 billion, equivalent to approximately Rs 134.8 billion. The deal, announced in May 2025, is structured as a purchase of shares from the State Bank of India and a group of other institutional sellers that have held positions in Yes Bank since its government-orchestrated rescue in 2020, when the lender faced severe capital and governance difficulties.
SMBC will acquire 13.19% of Yes Bank's shares directly from SBI, with the remaining 6.81% sourced from other members of the consortium that participated in the original restructuring. The transaction is described as the largest cross-border investment in the Indian banking sector.
STRUCTURE OF THE TRANSACTION
The deal gives SMBC a minority position in a bank that has since returned to profitability. Yes Bank operates a nationwide retail and corporate banking network in India.
SBI will retain a stake of about 10.8% in Yes Bank after the sale.
The transaction is subject to regulatory approvals, including from the Reserve Bank of India, before it can be completed.