SMBC's Landmark Investment in Yes Bank: A New Chapter in India-Japan Banking Ties

Sumitomo Mitsui Banking Corporation is set to acquire a 20% stake in Yes Bank from State Bank of India and seven other lenders for Rs 13,483 crore. This acquisition marks the largest cross-border investment in the Indian banking sector, with SMBC becoming Yes Bank's largest shareholder.

Japan's Sumitomo Mitsui Banking Corporation (SMBC) is poised to make a significant move in the Indian banking sector by acquiring a 20% share in Yes Bank. The transaction awaits approval from India's Competition Commission.

SMBC will procure these stakes from the State Bank of India (SBI) and seven additional banks, with the deal valued at Rs 13,483 crore. This stands as the most substantial cross-border investment in India's banking history, solidifying SMBC's position as Yes Bank's largest shareholder.

The deal appears to raise no competition concerns, according to the involved parties, who have described potential overlaps in business activities. Post-transaction, SBI will reduce its stake in Yes Bank from 24% to just over 10%, following its initial investment as part of the bank's reconstruction scheme in 2020.

(With inputs from agencies.)