The Reserve Bank of India (RBI), through its letter dated 22nd August 2025, has approved Japan’s Sumitomo Mitsui Banking Corporation’s (SMBC) proposal to acquire up to 24.99% of private sector Yes Bank’s paid-up share capital/voting rights.
This approval will remain valid for one year. RBI has also clarified that this acquisition will not result in SMBC being classified as a promoter of the Bank.
“The approval is subject to compliance with the Banking Regulation Act, 1949, RBI’s Master Directions and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies (issued on 16th January 2023 and updated from time to time), the Foreign Exchange Management Act, 1999, and other applicable laws and conditions, including lock-in requirements and RBI’s discretion on any subsequent transactions,” the RBI has said in the letter.
Yes Bank had on May 09, 2025, informed the stock exchanges of the proposed acquisition by SMBC of 20.00% shareholding in the Bank through a secondary stake purchase of 13.19% stake from the State Bank of India and an aggregate of 6.81% stake from seven other shareholders of the bank, i.e., Axis Bank Ltd, Bandhan Bank Ltd, Federal Bank Ltd, HDFC Bank Ltd, ICICI Bank Ltd, IDFC First Bank Ltd and Kotak Mahindra Bank Ltd.
Further, the consummation of the transaction is subject to approval from Competition Commission of India (CCI) and customary conditions.
As of March, 2024, SBI held 23.97% stake in Yes Bank. Out of that it has agreed to sell 13.19% stake to SMBC for ₹8,889 crore.
After the Yes Bank scam surfaced, the government stepped in and the bank was rescued in March 2020 by roping in a SBI-led consortium which infused capital to bail out the bank.
Published – August 23, 2025 09:49 pm IST