Yes Bank shares are likely to remain in focus tomorrow after the Reserve Bank of India (RBI) granted approval to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to increase its stake in the private lender. The central bank, through a letter dated August 22, 2025, has permitted SMBC to acquire up to 24.99% of Yes Bank’s paid-up share capital or voting rights.
This approval marks a key step in the previously announced secondary stake purchase plan, disclosed on May 9, 2025. Under the proposed transaction, SMBC will acquire a 13.19% stake from State Bank of India and another 6.81% collectively from seven other lenders—namely Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank. In total, this gives SMBC a 20% stake in Yes Bank, with the RBI nod allowing flexibility to scale up further to 24.99%.
Importantly, the RBI clarified that SMBC, despite the higher holding, will not be classified as a promoter of the bank. The approval is valid for one year and comes with the standard conditions of compliance under the Banking Regulation Act, FEMA norms, and RBI’s guidelines on shareholding in banks.
Yes Bank also highlighted that the deal still requires clearance from the Competition Commission of India (CCI) and fulfillment of other customary conditions precedent before it can be formally completed.
