SMBC to Acquire 20% Stake in Yes Bank

New Delhi, Jun 30 (PTI) Japan's Sumitomo Mitsui Banking Corporation (SMBC) has sought clearance from the fair trade regulator CCI to acquire a 20 per cent stake in private sector lender Yes Bank.

The development came after State Bank of India (SBI) and seven other lenders last month announced selling 20 per cent of their combined stakes in Yes Bank to SMBC for a consideration of Rs 13,483 crore, making it the largest cross-border investment in the Indian banking sector.

"The proposed combination relates to the acquisition of share capital and voting rights of Yes Bank by SMBC," a notice filed with the Competition Commission of India (CCI) said on June 23.

SMBC is a wholly-owned subsidiary of Sumitomo Mitsui Financial Group, Inc (SMFG). SMFG is the second-largest banking group in Japan with total assets of USD 2 trillion as of December 2024 with a strong global presence.

SMBC is among the leading foreign banks in India and SMFG's wholly-owned subsidiary SMFG India Credit Company is among the largest diversified NBFCs in India.

The proposed transaction does not raise any competition concerns, irrespective of how the relevant market is defined, the parties have said.

"To assist the CCI in its assessment, the parties have outlined potential overlaps in business activities across various segments, including lending, digital payments, deposit-taking, forex services, investment banking, loans against securities, and cash management," they added.

After the completion of the transaction, SMBC will become the single largest shareholder of Mumbai-based Yes Bank.

Of the 20 per cent stake, SBI would dilute a 13.19 per cent stake in Yes Bank in favour of SMBC for a consideration of Rs 8,889 crore, while 6.81 per cent shareholding will be offloaded by seven other lenders -- Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank -- for about Rs 4,594 crore.

SBI and the seven investor lenders had invested in the bank as part of the Yes Bank reconstruction scheme in March 2020. The state-owned SBI currently holds a 24 per cent stake in Yes Bank, will be left with a little over 10 per cent stake after the dilution.

For the fourth quarter ended March 2025, Yes Bank reported a 63 per cent jump in standalone net profit at Rs 738 crore as compared to Rs 451.9 crore in the corresponding quarter a year ago.

In FY25, the bank's net profit doubled to Rs 2,406 crore as compared to Rs 1,251 crore in the preceding fiscal year.