State Bank of India (“SBI”) to remain a Major Shareholder holding >10%
FinTech BizNews Service
Mumbai, May 9, 2025: SMBC has entered into a definitive agreement today on 9 May 2025 to acquire 20% stake in YES Bank through a secondary stake purchase of 13.19% from SBI and 6.81% aggregate stake from other bank shareholders (“Investor Banks”) including Axis Bank Limited, Bandhan Bank Limited, Federal Bank Limited, HDFC Bank Limited, ICICI Bank Limited, IDFC First Bank Limited and Kotak Mahindra Bank Limited. SBI and the seven Investor Banks had invested in the Bank as part of the YES Bank Reconstruction Scheme in March 2020.
This transaction is the largest cross-border investment in the Indian banking sector. The transaction is subject to the necessary regulatory and statutory approvals including from the Reserve Bank of India and Competition Commission of India and will be subject to customary closing conditions.
SMBC, is a wholly owned subsidiary of Sumitomo Mitsui Financial Group, Inc. (“SMFG”). SMFG is the second largest banking group in Japan with Total Assets of ~US$2tn as of December 2024 with strong global presence. SMFG is listed on the Tokyo Stock Exchange, Premier Market of the Nagoya Stock Exchange and SMFG’s American Depositary Receipts (ADRs) are also listed on the New York Stock Exchange. SMFG is rated A1 / A- (Stable) by Moody’s and S&P respectively (long-term outlook).
SMBC is among the leading foreign banks in India and SMFG's wholly owned subsidiary, SMFG India Credit Company Limited, is among the largest diversified NBFCs in India.
The transaction is a significant milestone to drive YES Bank’s next phase of growth, profitability and value creation and we expect to leverage SMBC’s global expertise in this phase.
Mr. Prashant Kumar, Managing Director & Chief Executive Officer, YES Bank said, “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.
We thank SBI for its stewardship since becoming YES Bank’s largest shareholder in 2020 and expect to work closely with both SMBC and SBI in this next phase of growth. We also thank the Government of India, the RBI and other Investor Banks for their guidance and support during and post the Reconstruction of the Bank."
Mr. Toru Nakashima, President & Group CEO, SMFG and Mr. Akihiro Fukutome, President & Chief Executive Officer, SMBC said, “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.”
YES Bank was advised by Citigroup Global Markets Private Limited (Citi) as its financial adviser and AZB & Partners (AZB) as its legal advisor.
SMBC was advised by its financial advisors J.P. Morgan and Jefferies and legal advisors J. Sagar Associates (JSA) and Anderson Mori & Tomotsune (on the Japanese law aspects).
