SMBC Set to Become Major Yes Bank Shareholder with Key RBI Approval

In a significant development for India's financial sector, Sumitomo Mitsui Banking Corporation (SMBC) has secured crucial approval from the Reserve Bank of India (RBI) to acquire a substantial stake of up to 24.99% in Yes Bank. This green light marks a pivotal moment in Yes Bank's ongoing journey of resurgence and capital strengthening.

The move by the Japanese banking giant is a clear indicator of growing international confidence in the Indian private sector lender, which has been working diligently on its turnaround strategy.

SMBC's increased investment comes as part of a broader capital raising exercise by Yes Bank, aimed at bolstering its financial resilience and supporting its growth ambitions.

Initially, SMBC had invested approximately 9.99% in Yes Bank. This latest approval from the RBI allows the Tokyo-headquartered bank to nearly triple its holding, becoming one of the most prominent institutional shareholders in Yes Bank.

This significant stake will provide SMBC with a stronger voice and deeper involvement in the strategic direction of the Indian bank.

Yes Bank's capital raising efforts have seen participation from other global investment powerhouses as well. Private equity giants Carlyle Group and Advent International previously infused substantial capital into the bank, further diversifying its shareholder base and injecting vital funds for its expansion and operational stability.

This latest approval for SMBC underscores the successful execution of Yes Bank's capital augmentation plan and its renewed attractiveness to long-term foreign investors.

The enhanced partnership with a global banking behemoth like SMBC is expected to bring not only capital but also strategic expertise and international best practices to Yes Bank, paving the way for sustained growth and stability in the competitive Indian banking landscape.