MUMBAI: Japanese banking major Sumitomo Mitsui Banking Corporation (SMBC), which has already completed a 20% stake buy in Yes Bank for Rs 13,483 crore, has said it will pick up an additional 4.2% stake in the bank from an affiliate of Carlyle Group for Rs 2,850 crore. The RBI has allowed the Japanese lender to own up to 24.99% in the private sector lender rescued by a central bank scripted bailout package in March 2020.
This takes the total investment that the Japanese financial giant pumped into Yes Bank to Rs 16,333 crore for a 24.2% stake.
SMBC has reached an agreement with CA Basque Investments, an affiliate of the global investment firm Carlyle Group, to increase its equity stake in Yes Bank by an additional 4.2%, the Japanese lender said.
The agreement follows the completion of SMBC’s initial acquisition of a 20% stake in the bank on Wednesday.
On May 9, 2025, the Reserve Bank had allowed SMBC to pick up 20% in Yes Bank for Rs 13,483 crore. In late August, the regulator allowed a further 4.99% for an undisclosed sum but without the promoter tag. The stipulation was that SMBC will be considered to be a public shareholder. This deal with Carlyle is part of that.
Other banks like Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank would collectively sell 6.81% stake for Rs 4,594 crore to SMBC at Rs 21.50 per share, as against their purchase price of Rs 10/share. The Yes Bank counter was trading at Rs 20.09 at 1400 hours on Thursday.
In a statement Wednesday, SBI said it has completed the divestment of its 13.18% stake in Yes Bank for Rs 8,889 crore to SMBC, which is the second largest banking group in Japan with total assets of $2 trillion.
SMBC also sold its entire 1.65% stake in Kotak Mahindra Bank earlier this month to "rebalance its strategic investment portfolio," it said.
“The transaction for the additional 4.2% stake is valued at around Rs 2,850 crore or ($323.38 million), consistent with the per share purchase price of the initial acquisition," SMBC said.
Following the fulfilment of all preconditions, including regulatory consent, SMBC has announced the completion of the initial stake acquisition.
The investment will also lead to the appointment of two SMBC-nominated non-executive directors to the board of Yes Bank, which will now be associated with the SMBC Group as an equity-method affiliate but not as a promoter.
Commenting on the deal completion, Yes Bank chief executive Prashant Kumar said, “The completion of this transaction is a defining moment for Yes Bank. We are privileged to welcome SMBC as our largest shareholder and board participant. With the combined sponsorship of SMBC, backed by SMFG’s global scale, and SBI, we are uniquely positioned to grow stronger, expand Japan–India business flows, and deliver long-term value for all stakeholders.”
“Through the investments, SMBC Group will further strengthen its presence in India and will contribute to the sustainable and long-term growth of Yes Bank,” the SMBC statement added.