Overview
- The approval allows SMBC to convert its four Indian branches in New Delhi, Mumbai, Chennai and Bengaluru into a locally incorporated wholly owned subsidiary.
- A final licence will be issued after the RBI is satisfied that SMBC has met conditions under Section 22(1) of the Banking Regulation Act, 1949.
- If completed, SMBC would be only the third foreign bank with a WOS licence in India, after State Bank of Mauritius India and DBS Bank India.
- SMBC is YES Bank’s largest shareholder with a 24.22% stake and holds two board seats via an RBI-specific exemption.
- Lawyers and analysts note regulatory questions over simultaneous operational presence and significant ownership, with any potential outcomes described as speculative at this stage.