Recent reports suggest that Japan’s Sumitomo Mitsui Banking Corporation (SMBC), a unit of Sumitomo Mitsui Financial Group, is in talks to acquire a stake in India’s Yes Bank. Here’s another one based on the available information
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Stake acquisition talks: SMBC is reportedly in talks to buy up to 51% stake in Yes Bank, and the deal is valued at around $1.7 billion. The structure could involve initially owning less than 26% and later merging through a share swap, or buying 26% outright with an openness for an additional 26%, making SMBC the largest shareholder.
Regulatory status: While some reports claimed that SMBC has received approval from the Reserve Bank of India (RBI), others, including a CNBC-TV18 report citing banking news, said no such approval has been granted, and there is no application pending with the RBI. Yes Bank itself clarified that further speculation is not required under regulatory norms.
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Shareholder dynamics: State Bank of India (SBI), which holds a 24% stake in Yes Bank, is one player in the talks, potentially looking to sell part or all of its stake. Other shareholders such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank and LIC collectively hold 11.34% but their exit plans are still not on the table.
Market Impact: News of the potential deal led to a surge in Yes Bank’s share price, with gains of up to 10% on May 6, 2025, reaching an intraday high of ₹19.44, though the stock later trimmed gains to close around ₹18.11–₹18.24
Background: Yes Bank, once India’s fifth-largest, nearly collapsed in 2020 due to governance problems that required a bailout from SBI. It has since recovered, reporting a profit of ₹2,406 crore and net interest income of ₹8,944 crore for the year ended March 2025.
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Context of the talks: SMBC’s interest comes after an earlier failed deal with Yes Bank, which involved other banks such as Mitsu UFJ Financial Group and Emirates NBD, was often stalled due to concerns over voting rights and limits. If the deal goes ahead, SMBC’s voting rights could be limited to 26% as per RBI rules
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Important note: Information is mixed, there are conflicting reports about RBI approval and the deal. Reports from Yes Bank and CNBC-TV18 suggest that the deal has not progressed as much as some sources claim, so caution is urged against speculation. Always cross-check such financial developments with primary sources like regulatory filings or official statements
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