SMBC rules out increasing stake in Yes Bank beyond current level

Yes Bank

17/10/2025 07:03

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By Gopika Gopakumar

MUMBAI, Oct 17 (Reuters) - Japanese lender Sumitomo Mitsui Banking Corporation SUMFGI.UL has no immediate plans to raise its stake in India's Yes Bank beyond 24.99%, a senior executive at the bank told Reuters on Friday.

In his first interview since the deal concluded in September, Rajeev Kannan, group executive officer and head of SMBC Group's India division, said the bank is focused on contributing to Yes Bank's board as its largest shareholder and does not intend to take on an executive role in the lender.

"We are not actively looking at increasing our stake in Yes Bank beyond the regulatory permissible limit of 24.99%," Kannan said. "There are many areas which Yes Bank still needs to work on, and we need to ensure that those areas, which they have a plan to address, are being executed."

The bank's current holding stands at 24.2%.

Under India's takeover regulations, acquiring 25% or more in a listed company triggers a mandatory open offer to purchase at least an additional 26% from public shareholders, potentially resulting in a majority stake of 51%.

Analysts had widely expected that SMBC may raise its stake further and launch an open offer.

In August, SMBC received Reserve Bank of India's approval to buy up to 24.99% stake in Yes bank from State bank of India SBI.NS and seven other shareholders after having inked a deal in May to purchase a 20% stake for $1.6 billion, in the country's largest cross-border financial sector merger and acquisition.

(Reporting by Gopika Gopakumar; Editing by Stephen Coates)

((Gopika.Gopakumar@thomsonreuters.com;))