Yes Bank acquisition: RBI approves SMBC to buy 24.99% stake; CCI nod still pending

Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has obtained the Reserve Bank of India’s (RBI) approval to purchase up to 24.99% stake in Yes Bank, the personal sector lender introduced on Saturday.The growth comes after Yes Bank’s May 9 disclosure about SMBC’s plan to buy a 20% holding within the financial institution by way of a secondary stake buy, 13.19% from the State Bank of India and 6.81% from seven different shareholders. These embody Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.“In this regard, we are pleased to inform that SMBC has received the approval of the Reserve Bank of India (RBI) to acquire up to 24.99% of the paid-up share capital/ voting rights of the Bank vide letter dated August 22, 2025,” Yes Bank stated in a regulatory submitting.The financial institution added that the approval is legitimate for one 12 months from the date of the RBI’s letter. Importantly, the central financial institution clarified that SMBC wouldn’t be categorised as a promoter of Yes Bank following the acquisition.The RBI’s nod comes with a number of situations. These embody compliance with the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated 16 January 2023 (as amended from time to time), the Foreign Exchange Management Act, 1999, and different relevant legal guidelines.Yes Bank additionally famous that lock-in necessities, subsequent transactions, and RBI’s choices would proceed to apply.In addition, the proposed deal will want clearance from the Competition Commission of India (CCI) and fulfil customary situations precedent talked about in agreements referred to in Yes Bank’s May 9 submitting.