Japan’s SMBC buys 20 per cent of Yes Bank in biggest cross-border deal

Japan’s Sumitomo Mitsui Banking Corporation (SMBC) acquired a 20 per cent stake in Yes Bank from SBI and other investors, becoming the largest shareholder. The deal strengthens governance, Japan–India trade flows, and corporate banking growth, with Yes Bank receiving upgraded AA- ratings.

New Delhi: Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has completed the acquisition of a 20 per cent stake in Yes Bank from state-owned State Bank of India (SBI) and other bank investors, the private sector lender announced on Thursday.

With this transaction, SMBC has become Yes Bank’s largest shareholder, while SBI continues to hold a significant stake of over 10 per cent. This milestone marks the largest cross-border investment in an Indian private sector bank.

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The completion of the acquisition also includes the appointment of two SMBC nominee directors to Yes Bank’s board. This move is expected to enhance governance and foster deeper strategic collaboration between the two entities.

Yes Bank, in a stock exchange filing, stated that Shinichiro Nishino and Rajeev Veeravalli Kannan have been inducted onto the bank’s board. The private sector bank stated its intention to leverage SMBC’s global strengths, particularly in facilitating trade and investment flows between Japan and India, to accelerate growth in its corporate banking, treasury services, and cross-border solutions.

“The completion of this transaction is a defining moment for Yes Bank. We are privileged to welcome SMBC as our largest shareholder and Board participant,” Prashant Kumar, Managing Director and Chief Executive Officer, Yes Bank, said.

“With the combined sponsorship of SMBC, backed by SMFG’s global scale, and SBI, India’s most trusted bank, YES Bank is uniquely positioned to grow stronger, expand Japan–India business flows, and deliver long-term value for all stakeholders,” he added.

Also, Yes Bank said that four domestic credit rating agencies — CRISIL, ICRA, India Ratings, and CARE — have now assigned it AA- ratings, the highest level since March 2020. These upgrades reflect the bank’s strengthened capital position, robust governance, and improved business performance.

On Wednesday, the country’s largest lender SBI announced the completion of the divestment of about 13.18 per cent stake in Yes Bank to Sumitomo Mitsui Banking Corporation of Japan for Rs 8,888.97 crore.