SBMC receives RBI nod for 25% stake acquisition in Yes Bank, not to be classified as promoter

Private lender Yes Bank on Saturday said the Reserve Bank of India (RBI) has approved Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99% of the bank’s paid-up share capital and voting rights.

Importantly, RBI has clarified that following this acquisition, SMBC will not be classified as a promoter of Yes Bank.

The bank disclosed the development in a regulatory filing, noting that the approval is valid for one year from August 22, 2025. The proposed acquisition stems from SMBC’s plan to raise its holding in Yes Bank to 20% via a secondary stake purchase.

This includes a 13.19% stake from State Bank of India and an additional 6.81% stake from seven other existing shareholders of Yes Bank, namely Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

“We refer to our earlier stock exchange disclosure dated May 09, 2025, informing the stock exchanges of the proposed acquisition by Sumitomo Mitsui Banking Corporation (“SMBC”) of 20.00% shareholding in the Bank through a secondary stake purchase of 13.19% stake from the State Bank of India and an aggregate of 6.81% stake from 7 other shareholders of the Bank, i.e., Axis Bank Limited, Bandhan Bank Limited, Federal Bank Limited, HDFC Bank Limited, ICICI Bank Limited, IDFC First Bank Limited and Kotak Mahindra Bank Limited (“Proposed Transaction”),” said the bank in its exchange filing.

Any subsequent transactions will also remain subject to regulatory conditions and RBI’s decision.

The bank further noted that consummation of the transaction is contingent upon receiving clearance from the Competition Commission of India (CCI) and fulfilling customary conditions precedent specified in the agreements announced earlier in May 2025.

On Friday, the shares of Yes Bank closed 0.8% lower at Rs 19.28 on the BSE.

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