SMBC to invest ₹16,000cr in Yes Bank, acquire 20% stake
Business
Sumitomo Mitsui Banking Corporation (SMBC) is set to invest ₹16,000 crore (about $1.83 billion) in Yes Bank, aiming to boost the bank's financial health.
With this move, SMBC will pick up a 20% stake—pending regulatory approvals—which should help Yes Bank become more stable and competitive.
Fresh capital to improve Yes Bank's net interest margin
The plan includes raising funds through ₹8,500 crore in yen bonds and ₹7,500 crore via foreign currency convertible bonds.
This fresh capital is expected to lower borrowing costs and improve Yes Bank's net interest margin (which was at 2.5% as of June 2025).
SMBC might even increase its stake further by talking with other major investors down the line.