In a significant move for India’s banking sector, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has agreed to acquire a 20% stake in Yes Bank for approximately ₹13,480 crore ($1.58 billion). This acquisition marks the largest cross-border merger and acquisition deal in India’s financial sector. SMBC will purchase a 13.19% stake from the State Bank of India (SBI), Yes Bank’s largest current shareholder, and a combined 6.81% from a consortium of Indian banks, including Axis Bank, HDFC Bank, ICICI Bank, and others.
The deal is pending approvals from the Reserve Bank of India, the Competition Commission of India, and Yes Bank’s shareholders. Yes Bank CEO Prashant Kumar described the deal as a significant milestone in the bank’s growth journey. The bank’s shares surged nearly 10% following the news, reflecting investor confidence in the strategic partnership.
