• SMBC raises stake in Yes Bank to 24.22%, becoming largest shareholder.
• SBI cuts its Yes Bank holding to just over 10%.
• Yes Bank gets credit rating upgrades, showing stronger finances.

In a big move for India’s banking sector, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has acquired an additional 4.22% stake in Yes Bank, becoming its largest shareholder. With this investment, SMBC’s total holding now stands at 24.22%, surpassing State Bank of India (SBI), which had led the bank’s rescue mission in 2020.

The stake was acquired through an off-market deal, where SMBC picked up 132.39 crore shares, according to a regulatory filing by Yes Bank. This transaction is part of SMBC’s broader agreement with CA Basque Investments, an affiliate of global investment firm Carlyle Group, to expand its presence in the Indian banking space.

This development also follows SBI’s decision to divest 13.18% of its stake in Yes Bank, bringing its ownership down to just over 10%. SBI had originally taken a 24% stake in the bank as part of the RBI backed reconstruction plan in March 2020, when Yes Bank was struggling with mounting bad loans.

Yes Bank’s management sees SMBC’s growing stake as a strategic advantage. The bank plans to leverage SMBC’s global network to drive growth in areas like corporate banking, treasury services, and cross-border trade between India and Japan.

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Adding to the positive momentum, four major Indian credit rating agencies CRISIL, ICRA, India Ratings, and CARE have upgraded Yes Bank’s rating to AA-, reflecting strong improvements in its capital base, governance, and overall performance.

With fresh international backing, improved creditworthiness, and renewed focus on business expansion, Yes Bank is positioning itself as a resilient and growth ready private bank in India’s evolving financial landscape.