CCI Approves SMBC’s Stake Hike in Yes Bank to ~25%

The Competition Commission of India (CCI) has approved Sumitomo Mitsui Banking Corporation’s (SMBC) proposal to increase its equity stake and voting rights in Yes Bank Ltd, a key step in the Japanese lender’s ongoing investment in the Indian private sector bank.

Earlier, on August 23, Yes Bank announced that SMBC had secured approval from the Reserve Bank of India (RBI) to raise its shareholding to as much as 24.99%. The RBI’s clearance is valid for one year, allowing SMBC flexibility in timing the additional investment.

Yes Bank Current Shareholding Structure

SMBC currently holds a 20% stake in Yes Bank, acquired in May 2025 through a secondary market transaction. The deal included a 13.19% stake purchased from the State Bank of India (SBI) and a combined 6.81% from seven other domestic lenders such as Axis Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank.

As of June 2025, Indian banks collectively held 33.7% in Yes Bank, with SBI remaining the largest single shareholder at 23.96%.

Apart from domestic institutions, Yes Bank also has notable foreign shareholders. CA Basque Investments and Verventa Holdings hold stakes of 4.22% and 9.2%, respectively, reflecting growing global interest in the lender.

Strategic Expansion by SMBC

SMBC, a wholly owned subsidiary of Sumitomo Mitsui Financial Group, operates branches in New Delhi, Mumbai, Chennai, and the GIFT City in Gujarat. Its increased investment in Yes Bank is expected to strengthen the bank’s capital base and enhance India-Japan financial ties.

The move aligns with SMBC’s long-term strategy to expand its footprint in India’s growing banking and financial sector.

Also Read: Bandhan Bank Share Price in Focus as Lender Revises ATM Transaction Charges from October 1, 2025

Yes Bank Q1FY26 Highlights

During Q1FY26, the bank reported a healthy performance with Net Interest Income (NII) reaching ₹2,371 crore, marking a growth of 5.7% year-on-year (YoY) and 4.2% quarter-on-quarter (QoQ), primarily supported by a reduction in the cost of funds. The Net Interest Margin (NIM) improved to 2.5%, trending upwards YoY, aided by a decline in deposits placed to meet PSL shortfalls and a reduction in savings account (SA) rates, though partially offset by the impact of asset repricing.

Non-interest income rose sharply to ₹1,752 crore, up 46.1% YoY—boosted significantly by treasury gains—and a modest 0.7% QoQ increase. Operating expenses stood at ₹2,766 crore, rising 8.1% YoY and 2.4% QoQ; excluding Priority Sector Lending Certificate (PSLC) costs, opex rose by a more moderate 5.7% YoY and 1.3% QoQ.

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