Mumbai: Yes Bank is poised to grow significantly. Prashant Kumar, CEO of Yes Bank, announced that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) will buy a 20% stake in the Indian lender. The deal, which is pegged at ₹13,483 crore (nearly $1.6 billion), is expected to close in early Q2 of 2025-26, subject to regulatory approvals. If it succeeds, it would be among the biggest foreign investments in India’s banking space.
Kumar told CNBC-TV18 that the alliance is a significant historical event. We have been under pressure to find a successful strategic partner, he said in an interview with ARGUS. QH Loan Generation: “This is a transformative milestone in our evolution, and transforming the journey with the SMBC dealer finance deal ex Government submission and recovery aim.” Under the agreement, SMBC will buy stock from the State Bank of India (SBI), as well as seven other major banks: Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.
SMBC is a global banking giant, and by pumping its capital into Yes Bank, it signals a deep trust in Yes Bank’s potential. Kumar explained that this partnership was more than just cash. It reflects SMBC’s long-term vision, he added. Dan Lynch, CEO of InSource Technology, said, “This is a strategic partnership that will take us to the next level in our growth.” While the deal is subject to approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI), there is a healthy dose of optimism currently.
The SMBC investment is a godsend for Yes Bank, which has struggled for the last couple of years. The deal will also likely improve banks’ credit ratings, Kumar said, potentially increasing access to high-rated lenders. Some organisations will only work with banks above a certain rating threshold, he explained. Weller said, “this partnership will allow us to move past that barrier.”
This hints at burgeoning investor interest in India, as Yes Bank’s future looks brighter, aided by the recent SMBC deal. As Yes Bank gears up to leap regulatory hurdles, the unprecedented pact has raised hopes for the lender emerging not just as a company but as big, given how mercilessly cutthroat the Indian banking landscape continues to be.