RBI clears way for SMBC to boost YES Bank stake
The Reserve Bank of India has okayed Japan's Sumitomo Mitsui Banking Corporation (SMBC) to raise its stake in YES Bank up to 24.99%—but without making SMBC a "promoter."
This approval, good for one year from August 22, 2024, means SMBC can get more involved in India's banking scene without the extra regulatory baggage.
SMBC's current stake and potential increase
SMBC already owns 20% of YES Bank after buying big chunks from State Bank of India and several other Indian banks. Now, it wants to pick up another 4.99%, possibly from private equity players like Carlyle and Advent, or even through the market.
Advent International has denied plans to sell, and Carlyle has not commented publicly.
The move gives SMBC more say at YES Bank but sidesteps rules that would force a public offer or change how much control they have.
What's next for SMBC and YES Bank?
While talks are still informal, this could increase SMBC's strategic influence at YES Bank—without tripping any major regulatory alarms.
For anyone interested in how global banks are investing in India or what this means for competition and innovation in banking here, it's a story worth watching.