Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is set to acquire a 20% stake in India’s Yes Bank in what will be the largest-ever cross-border investment in an Indian bank. This move, involving a USD 1.58 billion transaction, signals a major turning point for Yes Bank, which has been recovering from financial troubles since 2017. The deal awaits regulatory clearance from the Reserve Bank of India and the Competition Commission of India.
Sumitomo Mitsui Banking Corporation (SMBC), a leading Japanese financial group headquartered in Tokyo, announced plans to acquire a 20% stake in Yes Bank, headquartered in Mumbai, Maharashtra, India. The USD 1.58 billion investment is set to be the largest cross-border investment in an Indian banking institution to date.
Yes Bank, a private-sector bank founded in 2004, faced significant regulatory scrutiny beginning in 2017 due to under-reported non-performing assets and accounting irregularities. Its founder and former CEO Rana Kapoor was removed amid allegations, and the bank’s financial condition deteriorated rapidly. In 2020, State Bank of India (SBI), along with ICICI Bank and Kotak Mahindra Bank, infused capital to stabilize the institution.
Now, as part of its strategic revival, eight existing lenders, including SBI, have agreed to sell their combined stakes to SMBC, positioning the Japanese bank as Yes Bank’s single largest shareholder. The deal is currently pending approvals from India’s Reserve Bank and Competition Commission.
Yes Bank’s current Managing Director, Prashant Kumar, views the partnership as a critical step in restoring the bank’s credibility and advancing its growth. The bank aims to leverage SMBC’s international expertise, operational discipline, and governance frameworks.
SMBC CEO Akihiro Fukutome noted that the investment aligns with the bank’s long-term vision to build lasting, value-driven relationships in Asia, especially in India’s growing financial services sector. Industry analysts suggest this could pave the way for further global investments into India’s banking sector.
This transaction is being seen as a new chapter in Yes Bank’s transformation story, signaling renewed trust and momentum from global financial players.
