Japan’s SMBC to take 20% stake in YES Bank, becomes leading shareholder

By Puja Sharma

 State Bank of India will continue as a key shareholder, holding more than 10% stake.

Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has signed a deal to buy a 20% stake in YES Bank, becoming its largest shareholder. The purchase includes a 13.19% stake from the State Bank of India (SBI) and 6.81% from seven other Indian banks, which had invested in YES Bank during its 2020 restructuring.

This deal marks one of the largest foreign investments in India’s banking sector and is subject to approvals from the Reserve Bank of India and the Competition Commission of India.

SMBC is part of Japan’s Sumitomo Mitsui Financial Group (SMFG), one of the country’s biggest financial groups, with a global presence and assets worth around $2 trillion. SMBC has a strong presence in India and also operates SMFG India Credit Company, a major non-banking lender in the country.

YES Bank’s MD & CEO, Prashant Kumar, called the investment a “pivotal step” in the bank’s growth journey and welcomed SMBC as a major shareholder. He also acknowledged SBI’s support during the bank’s turnaround.

Kumar added, “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.”

SMFG CEO Toru Nakashima and SMBC CEO Akihiro Fukutome said the deal reflects their long-term commitment to India and confidence in YES Bank’s leadership and growth potential.

They noted, “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.”