Yes Bank gets RBI Nod For Stake Sale, SMBC To Buy 24.99%

Mumbai: Yes Bank has announced that the Reserve Bank of India (RBI) has allowed Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) to buy a 24.99 percent stake in the bank. The approval, given on August 22, will stay valid for one year.

The bank clarified that even after buying the stake, SMBC will not be treated as a promoter of Yes Bank.

Deal details

This deal was first made public on May 9, 2025. At that time, SMBC agreed to acquire a 20 percent stake through a secondary share purchase.

It planned to buy 13.19 percent shares from State Bank of India (SBI).

The remaining 6.81 percent shares would come from seven other banks: Axis Bank, Federal Bank, Bandhan Bank, ICICI Bank, HDFC Bank, IDFC First Bank, and Kotak Mahindra Bank.

With RBI’s latest approval, SMBC can increase its holding up to 24.99 percent.

Conditions attached

The RBI said its approval comes with certain conditions. These include following the Banking Regulation Act, 1949, FEMA rules, and other RBI guidelines. The approval also covers restrictions such as lock-in of shares, and any future changes in stake will again need RBI’s permission.

The transaction also needs clearance from the Competition Commission of India (CCI) and other required approvals before it can be completed.

Market reaction

On Friday, Yes Bank’s shares closed at Rs 19.28, down 0.77 percent.

In the last five sessions, the stock has fallen nearly 2 percent.

Over the last 30 days, it slipped by 3 percent.

In the past one year, the stock lost more than 20 percent.

In 2025 so far, the stock has remained almost flat.