SMBC to Meet RBI Officials to Acquire Majority Stake in Yes Bank

Japanese conglomerate Sumitomo Mitsui Banking Corporation (SMBC) is set to meet the Reserve Bank of India (RBI) officials this week. SMBC is expected to make a proposal to acquire a 51% stake in Yes Bank. As per experts, the application will be processed in a day or two after a round of meetings.

“The regulator is aware of the deal talks though the formal application will be made by SMBC in a few days,” said a banker who didn’t want to be named. Reviewing such applications can take up to 90 days. It is expected that the Japanese conglomerate will get a go-ahead to acquire a majority stake in Yes Bank.

“With most of the contentious issues ironed out, including on voting rights, there should not be further hurdles to the deal,” said a senior official, who asked not to be identified.

Previously, SMBC acquired over 13% stake from State Bank of India (SBI), which held 24% in Yes Bank. While SBI has indicated a timeframe of 12 months to close the deal, Yes Bank’s MD and CEO, Prashant Kumar, has said that SMBC may acquire a 20% stake in the private lender by the end of September 2025 quarter.

Notably, Yes Bank’s stake sale is set to be rolled out in three tranches, with the first tranche announced last Friday.

The proposal to the RBI revolves around an element of primary capital infusion into Yes Bank. This will increase SMBC’s stake in India’s sixth largest private bank to 26%. Advent International and Carlyle hold 9.2% and 6.84% stake, respectively, in Yes Bank. Life Insurance Corporation of India holds around 3.98% stake in Yes Bank.