Yes Bank has announced that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received the green light from the Reserve Bank of India (RBI) to buy up to 24.99% of the bank’s shares.
How the Deal is Structured
SMBC plans to pick up a 20% stake in Yes Bank through a secondary deal. The biggest chunk, 13.19%, will come from the State Bank of India (SBI), while the remaining 6.81% will be acquired from seven other banks: Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
RBI’s Approval Comes with Conditions
The RBI’s approval, dated August 22, 2025, is valid for one year. Importantly, the central bank clarified that even after this acquisition, SMBC will not be considered a promoter of Yes Bank.
Not Everyone Is Selling
Interestingly, two major private equity investors—Advent International (9.20%) and Carlyle Group (6.82%), have decided not to participate in this first round of stake sale to SMBC.
Yes Bank’s Rollercoaster Ride
Yes Bank’s story has been dramatic. In March 2020, the mid-sized lender nearly collapsed under the weight of corruption charges against its then-promoter and CEO, Rana Kapoor. To save the bank, the RBI stepped in with a rescue plan led by SBI and nine other banks, which took control.
Now, with a major global bank like SMBC stepping in, Yes Bank could be looking at a much stronger future.
