RBI Grants 'In-Principle' Approval to SMBC for Indian Subsidiary

The Reserve Bank of India granted 'in-principle' approval to Sumitomo Mitsui Banking Corporation to set up a wholly-owned subsidiary in India. SMBC, which currently operates through four branches, will convert these to form the subsidiary. Further approval depends on compliance with RBI conditions.

The Reserve Bank of India (RBI) announced an 'in-principle' approval for Japan's Sumitomo Mitsui Banking Corporation (SMBC) to establish a wholly owned subsidiary in India.

SMBC operates in India through branches in New Delhi, Mumbai, Chennai, and Bengaluru. The new approval will facilitate converting these branches into a single entity.

SMBC will receive a business commencement license once it meets all RBI conditions. The bank already owns a 24.22% stake in YES Bank, while SBI remains a substantial stakeholder.

(With inputs from agencies.)