Overview

• Yes Bank said the central bank’s August 22 approval allows Sumitomo Mitsui Banking Corporation to hold up to 24.99% for one year and confirms SMBC will not be classified as a promoter.
• The core transaction remains a 20% secondary purchase comprising 13.19% from State Bank of India and 6.81% from seven lenders including HDFC Bank, ICICI Bank and Kotak Mahindra Bank.
• The nod is subject to the Banking Regulation Act, RBI shareholding guidelines, FEMA and other terms such as lock-in provisions, with closing contingent on CCI clearance.
• SMBC earlier valued the 20% stake at about Rs 13,482 crore (≈$1.6 billion), a deal widely described as one of the largest foreign investments in an Indian bank.
• Reports indicate informal discussions for an additional c.4.99% stake—potentially from private equity holders—though Advent has denied plans to sell and no agreement has been disclosed.