CCI approves Japan's SMBC stake acquisition in Yes Bank
Yes Bank shareholders gave the green light for the fundraise in August, and the Reserve Bank of India (RBI) has already approved SMBC to acquire up to a 24.99% stake in the bank.
- Sep 2, 2025,
- Updated Sep 3, 2025 11:45 AM IST
The Competition Commission of India (CCI) on Tuesday cleared Japanese financial giant Sumitomo Mitsui Banking Corporation’s (SMBC) acquisition of a 20% stake in Yes Bank, marking one of the largest cross-border deals in India’s banking sector. The agreement, signed in May, valued the stake at $1.6 billion and is seen as a significant move in reshaping ownership of the private lender.
Yes Bank shareholders gave the green light for the fundraise in August, and the Reserve Bank of India (RBI) has already approved SMBC to acquire up to a 24.99% stake in the bank. Once controlled by co-founder Rana Kapoor, Yes Bank saw private equity firms Advent International and Carlyle Group become major shareholders following the 2020 bailout.
As per reports, SMBC plans to inject an additional Rs 16,000 crore ($1.83 billion) into Yes Bank through a combination of equity and debt. The capital infusion is expected to fortify the bank’s balance sheet, improve lending capacity, and could pave the way for a larger stake acquisition in the future.
In May, Yes Bank had revealed that SMBC planned to acquire a 20% stake through a secondary purchase—13.19% from the State Bank of India (SBI) and 6.81% from seven other shareholders, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
SMBC, one of Japan’s top three lenders with operations across 39 countries, is also setting up a wholly owned subsidiary in India. This subsidiary is expected to serve as the vehicle for acquiring a majority stake in Yes Bank over time.
On the performance front, Yes Bank reported a net interest margin (NIM) of 2.5% as of June 2025, which remains among the lowest in India’s banking sector. Despite this, the private lender posted a net profit of ₹801 crore in the first quarter of FY 2025-26, up 60% from ₹502 crore in the same quarter last year.
The bank’s net interest income (NII)—the difference between interest earned on loans and interest paid on deposits—rose 6% to ₹2,371 crore, compared with ₹2,244 crore in Q1 FY 2024-25. Provisions for bad loans also improved, declining 11% sequentially to ₹284 crore from ₹318 crore in the preceding quarter.
Shares of Yes Bank Ltd closed at Rs 19.56, up by 0.05%.
The Competition Commission of India (CCI) on Tuesday cleared Japanese financial giant Sumitomo Mitsui Banking Corporation’s (SMBC) acquisition of a 20% stake in Yes Bank, marking one of the largest cross-border deals in India’s banking sector. The agreement, signed in May, valued the stake at $1.6 billion and is seen as a significant move in reshaping ownership of the private lender.
Yes Bank shareholders gave the green light for the fundraise in August, and the Reserve Bank of India (RBI) has already approved SMBC to acquire up to a 24.99% stake in the bank. Once controlled by co-founder Rana Kapoor, Yes Bank saw private equity firms Advent International and Carlyle Group become major shareholders following the 2020 bailout.
As per reports, SMBC plans to inject an additional Rs 16,000 crore ($1.83 billion) into Yes Bank through a combination of equity and debt. The capital infusion is expected to fortify the bank’s balance sheet, improve lending capacity, and could pave the way for a larger stake acquisition in the future.
In May, Yes Bank had revealed that SMBC planned to acquire a 20% stake through a secondary purchase—13.19% from the State Bank of India (SBI) and 6.81% from seven other shareholders, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
SMBC, one of Japan’s top three lenders with operations across 39 countries, is also setting up a wholly owned subsidiary in India. This subsidiary is expected to serve as the vehicle for acquiring a majority stake in Yes Bank over time.
On the performance front, Yes Bank reported a net interest margin (NIM) of 2.5% as of June 2025, which remains among the lowest in India’s banking sector. Despite this, the private lender posted a net profit of ₹801 crore in the first quarter of FY 2025-26, up 60% from ₹502 crore in the same quarter last year.
The bank’s net interest income (NII)—the difference between interest earned on loans and interest paid on deposits—rose 6% to ₹2,371 crore, compared with ₹2,244 crore in Q1 FY 2024-25. Provisions for bad loans also improved, declining 11% sequentially to ₹284 crore from ₹318 crore in the preceding quarter.
Shares of Yes Bank Ltd closed at Rs 19.56, up by 0.05%.