Sumitomo Mitsui Banking Corporation (SMBC) of Japan recently announced a substantial increase in its stake in Yes Bank, effectively becoming the Mumbai-based bank’s largest shareholder. On September 23, 2025, Yes Bank confirmed that SMBC acquired an additional 4.22% stake, raising its total holding from 20% to 24.22%.
This significant acquisition involved SMBC purchasing 132.39 crore shares through an off-market sale on September 22. Consequently, SMBC’s total investment in Yes Bank now stands at 759.51 crore shares, positioning it as the dominant equity holder, even as State Bank of India (SBI) maintains a substantial stake of over 10%.
Yes Bank expressed its enthusiasm for this strengthened partnership, highlighting plans to leverage SMBC’s extensive global network and expertise. The collaboration is expected to particularly enhance trade and investment flows between Japan and India, accelerating growth across Yes Bank’s corporate banking, treasury services, and various cross-border solutions.
Adding to the positive sentiment, Yes Bank also noted recent upgrades in its credit ratings. Four prominent domestic credit rating agencies—CRISIL, ICRA, India Ratings, and CARE—have all assigned the bank an AA- rating. This marks the highest rating achieved by Yes Bank since March 2020, reflecting its significantly improved capital position, robust governance framework, and enhanced business performance.
This latest development follows SBI’s recent divestment of approximately 13.18% stake in Yes Bank to SMBC for ₹8,888.97 crore. Separately, SMBC also reached an agreement with CA Basque Investments, an affiliate of the global investment firm Carlyle Group, to acquire the additional 4.22% equity stake mentioned earlier.
The State Bank of India, which held a 24% stake following the bank’s reconstruction, now holds just over 10% after these dilutions. This restructuring traces back to March 2020, when the Reserve Bank of India (RBI) and the government initiated a comprehensive rescue plan for Yes Bank, just weeks before the onset of the COVID-19 pandemic. This plan involved a consortium of banks, led by SBI, taking a combined 79% stake to ensure the bank’s stability and survival.