Yes Bank Set For Fresh Foreign Stake As SMBC Enters The Picture, RBI Gives A Nod- Here’s Everything You Need To Know

SMBC Secures RBI Nod To Acquire 24.99% Stake in Yes Bank

Mumbai-based Public Sector bank MBC has obtained the RBI approval to acquire 24.99% in Yes Bank. Yes Bank Ltd, in a major development related to the banking sector in India, announced that the Reserve Bank of India (RBI) has approved Japan-based Sumitomo Mitsui Banking Corporation (SMBC) acquiring up to a 24.99-per cent stake in the bank.

The approval in the form of an official letter was granted by the RBI on August 22, 2025. The resolution of the regulatory fray came in a stock exchange filing on Saturday when Yes Bank said that it had received the necessary approvals to do so.

The stake offer of SMBC was exposed on May 9 in which it was proposed that SMBC would purchase 20 per cent of Yes Bank by a secondary purchase. That encompasses a 13.19 percent equity of State Bank of India and the rest of 6.81 percent shares by seven large Indian banks. The RBI approval is only valid on a yearly basis and it is subjected to conditions such as compliance to the Banking Regulation Act, foreign exchange laws. It is important to note that SMBC will not be a promoter even after the transaction is completed since the RBI confirmed that in the letter.

Stake Deal Follows Secondary Route With Indian Banks

The process of acquisition by MBC will be done through a sale that will include eight Indian banks. The 13.19 percent stake will be sold by State Bank of India and 6.81 percent will be sold by the remaining seven banks that include, Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.

This is a new balance of the proposed direct purchase of 20 per cent. Approval of RBI would allow SMBC to raise its stake to  24.99 percent, again subject to regulatory conditions. The deal is subject to the completion of the competition clearance in the Competition Commission of India (CCI) and the completion of all the terms as stated in the sharing purchase agreements. Other restrictions of future dealings include a lock in clause established by RBI. The proposed investment by MBC would be one of the biggest foreign bank investments on a medium sized Indian bank in 2025, making it a trendsetter with respect to the international strategic activity in the Indian banking arena into the private banking sector.

Stake Purchase Gets Green Light, But With Strings Attached

Though RBI has given the approval to SMBC to wanted stake in Yes Bank, it laid down strict compliance norms. MBC will need to comply with the banking regulation act, FEMA 1999 and RBI master Directions on bank shareholding.

RBI clarified that post deal, SMBC will not become a promoter. The transaction is not yet complete as it has to receive the approval of the Competition commission of India (CCI) and completion of the terms of the share purchase agreements. The one-year permission period will enable SMBC to buy its stake progressively. To Yes Bank, the capital and credibility boost are the investments. Investment analysts keenly observe the impact of this strategic change to Yes Bank, in terms of the ownership and the way forward of the bank.

Stake Buzz Reflects On Stock Performance

The Yes Bank stock ended the day at ₹19.28 which is a decline of 0.77 per cent; however, it has advanced around 8 per cent in the half-year period.

The potential to see increased investment activity in the case of RBI allowing SMBC to own a controlling share is also possible. The question surrounding the long-term effects on Yes Bank and its governance, capital base, and globalization is subject of scrutiny.

The confidence of institutions and retail sector might be boosted by the coming on board of SMBC as a key stakeholder. This step is being made against a backdrop of a number of pivotal changes initiated in the banking sector in India in 2025. The growing ASM environment provides Yes Bank with opportunities as the market sentiment will be more evident in the coming weeks.

(With Inputs From ANI)

Also Read: Adani Logistics Park Breaks Ground in Kalamassery, Kochi: A New Era for Kerala’s