Sumitomo Mitsui Banking Corporation (SMBC) has completed its acquisition of a 20% stake in YES BANK, making it the largest shareholder. This was achieved through a secondary share purchase from State Bank of India (SBI) and other investors. This investment marks the largest cross-border investment in an Indian private sector bank. YES Bank is now rated AA- across all four domestic agencies, its highest rating since March 2020.
SMBC Becomes Largest Shareholder
Sumitomo Mitsui Banking Corporation (SMBC) has successfully acquired a 20% shareholding in YES BANK. The acquisition was completed via a secondary purchase of shares from the State Bank of India (SBI) and other bank investors involved in the March 2020 Reconstruction Scheme. This transaction positions SMBC as YES BANK’s largest shareholder, while SBI remains a major shareholder with over 10% holding.
Governance and Collaboration
With the completion of this deal, two SMBC nominee directors have joined YES Bank’s Board, which will strengthen governance and create a platform for deeper strategic collaboration.
Strategic Advantages
YES BANK is positioned to capitalize on its transformative phase, backed by SMBC and SBI. SMBC, part of Sumitomo Mitsui Financial Group (SMFG), has a global balance sheet of approximately USD 2 Trillion. SBI, India’s largest bank, brings trust and stability. Both reinforce YES Bank’s credibility, governance, and growth potential.
Future Growth
YES BANK intends to leverage SMBC’s global strengths to facilitate Japan-India trade and investment, particularly in corporate banking, treasury services, and cross-border solutions.
Rating Upgrade
YES Bank is now rated AA- across all four domestic credit rating agencies (CRISIL, ICRA, India Ratings, and CARE), marking its highest level since March 2020. These upgrades reflect the bank’s strengthened capital position, robust governance, and improved business performance.
Source: BSE
