Yes Bank Gets RBI Nod for Sumitomo Mitsui to Buy Nearly 25% Stake

Yes Bank has announced that the Reserve Bank of India (RBI) has granted approval to Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99% of its paid-up share capital and voting rights. The approval, issued on August 22, 2025, is valid for one year.

Details of the Transaction

The proposed acquisition involves SMBC purchasing a 20% shareholding in Yes Bank through secondary transactions. This includes 13.19% stake from State Bank of India and 6.81% stake from seven other banks, namely Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

RBI has also clarified that SMBC will not be categorised as a promoter of Yes Bank despite the substantial shareholding.

Regulatory Conditions and Next Steps

The approval is subject to compliance with the Banking Regulation Act, 1949, RBI’s guidelines on acquisition of bank shares, FEMA regulations, and other applicable laws. Additional terms such as lock-in conditions and subsequent transactions will also be governed by RBI’s oversight.

Moreover, consummation of the deal is contingent upon approval from the Competition Commission of India (CCI) and fulfilment of customary conditions precedent outlined in earlier agreements.

Yes Bank Share Price in Focus

On August 25, 2025, Yes Bank share price (NSE: YESBANK) opened at ₹20.20, up from its previous close of ₹19.28. At 9:26 AM, the share price of Yes Bank was trading at ₹19.79, up by 2.65% on the NSE.

Also Read: YES Bank Extends Prashant Kumar’s Tenure as MD and CEO Till April 5, 2026!

Conclusion

The RBI’s approval marks a crucial step in Yes Bank’s proposed transaction with SMBC, signaling strong foreign investor confidence. Once CCI clearance and other conditions are met, this strategic acquisition will likely strengthen Yes Bank’s capital base, governance, and long-term growth trajectory.

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