Sumitomo Mitsui Banking Corporation (SMBC) has entered into a definitive agreement to acquire a 20% stake in YES Bank through a secondary stake purchase, making it the bank’s largest shareholder.
The stake comprises 13.19% from State Bank of India (SBI) and 6.81% from a group of Indian banks that invested in YES Bank under the Reconstruction Scheme in March 2020.
SBI will remain a significant shareholder, retaining a stake of over 10%.
The selling banks include Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
The deal is described as the largest cross-border investment in India’s banking sector to date.
It remains subject to regulatory approvals from the Reserve Bank of India and the Competition Commission of India, along with other customary closing conditions.
SMBC is a wholly owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), Japan’s second-largest banking group with around US$2 trillion in assets as of December 2024.
SMFG is listed in Tokyo and Nagoya, and its American Depositary Receipts (ADRs) trade on the New York Stock Exchange.
SMBC has an established presence in India, and SMFG’s subsidiary, SMFG India Credit Company Limited, is among the largest diversified non-banking financial companies in the country.
Prashant Kumar, Managing Director & CEO, YES Bank said,
“We are excited to welcome SMBC, a globally renowned financial partner, as a major shareholder whose investment marks a pivotal step in our next phase of growth. We expect to benefit from their global expertise and high governance standards.
This investment is a powerful endorsement of our transformation journey and future potential. Over the past few years, our growth has been shaped by the strong partnership and unwavering support of SBI and they will continue to remain a valued stakeholder.”
Toru Nakashima, President & Group CEO, SMFG and Akihiro Fukutome, President & CEO, SMBC said,
“India represents a key market for us, and we see immense long-term potential in its dynamic and fast-growing economy. We are proud to invest in YES Bank, a leading Indian bank with visionary leadership and a demonstrated track record of improving profitability.
This investment aligns with our commitment to building lasting, value-driven relationships in the region. We look forward to working closely with the team as a major shareholder in their next phase of growth.”
Featured image: Edited by Fintech News Singapore, based on image by digitizesc via Freepik
