New Delhi
Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has completed the purchase of a 20 percent stake in Yes Bank, making it the private lender’s largest shareholder. The stake was acquired from State Bank of India (SBI) and other participating banks. SBI will still hold more than 10 percent, maintaining a strong presence in the institution.
This deal is the largest cross-border investment in an Indian private sector bank. As part of the acquisition, two SMBC nominee directors — Shinichiro Nishino and Rajeev Veeravalli Kannan — have joined Yes Bank’s board, a move expected to strengthen governance and deepen collaboration.
Yes Bank’s management said the partnership would allow the lender to tap SMBC’s global expertise, especially in boosting trade and investment flows between India and Japan. The focus will be on expanding corporate banking, treasury services, and cross-border solutions.
Prashant Kumar, Managing Director and CEO of Yes Bank, called the acquisition a defining moment. He said that with SMBC’s backing, supported by the global reach of its parent group SMFG, and SBI’s continued trust, Yes Bank is well-positioned to grow stronger and deliver long-term value.
The bank also announced improved credit ratings. CRISIL, ICRA, India Ratings, and CARE have all upgraded Yes Bank to AA-, its highest rating since March 2020. These reflect stronger capital, better governance, and improved performance.
SBI confirmed it had completed the sale of about 13.18 percent stake in Yes Bank to SMBC for ₹8,888.97 crore. Analysts believe the investment marks a fresh chapter for the bank and could accelerate its recovery and growth journey.
