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India’s Competition Regulator Approves SMBC Stake in Yes Bank

By  |  September 3, 2025

India’s competition regulator announced on Tuesday that it has cleared the proposed purchase of a significant stake in Yes Bank by Japan’s Sumitomo Mitsui Banking Corporation (SMBC). The deal, first agreed upon in May, involves a $1.6 billion investment, making it one of the largest cross-border mergers and acquisitions in India’s financial services sector.

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    According to a statement, SMBC reached an agreement to acquire a 20% share in Yes Bank. The arrangement includes the purchase of a 13.19% stake from State Bank of India and an additional 6.81% collectively from Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

    Per a statement released in August, the Reserve Bank of India granted approval for SMBC to raise its ownership up to 24.99%. This clearance ensured the Japanese lender could expand its stake beyond the initial acquisition, strengthening its position in India’s growing banking sector.

    Yes Bank disclosed in a separate exchange filing that the central bank decided SMBC would not be classified as the lender’s “promoter,” a designation applied to large shareholders under Indian law. According to the filing, this determination spares the Japanese bank from additional regulatory obligations that would otherwise apply had it been categorized as a promoter.

    The transaction is expected to deepen financial ties between India and Japan while bolstering Yes Bank’s capital base as it continues to restructure and expand operations.

    Source: Reuters