SMBC becomes largest shareholder in YES Bank with 20% stake

Sumitomo Mitsui Banking Corporation (SMBC) has completed the acquisition of a 20% shareholding in YES Bank, positioning it as the largest shareholder. The transaction involved SMBC purchasing shares from State Bank of India (SBI) and other investors who participated in YES Bank's March 2020 Reconstruction Scheme, while SBI continues as a major shareholder with over 10% holding. The completion, noted on September 18, 2025, follows requisite approvals from the Reserve Bank of India and Competition Commission of India.

The acquisition involved the transfer of 4,134,404,897 equity shares from SBI to SMBC and 2,136,830,297 equity shares from seven other shareholders. As a result, two SMBC nominee directors, Mr. Shinichiro Nishino and Mr. Rajeev Veeravalli Kannan, have been appointed to YES Bank's Board, effective September 18, 2025, subject to shareholder approval. Mr. Sandeep Tewari, an SBI nominee, resigned as a non-executive director effective September 17, 2025.

This strategic investment has contributed to YES Bank's credit rating upgrades, with all four domestic agencies (CRISIL, ICRA, India Ratings, and CARE) now assigning the bank AA- ratings, the highest level since March 2020. YES Bank aims to leverage SMBC's global strengths to accelerate growth in corporate banking, treasury services, and cross-border solutions.