News Topical, Digital Desk : Japan's leading banking company Sumitomo Mitsui Banking Corporation (SMBC) is now going to strengthen its hold in Yes Bank. According to the exclusive news of Moneycontrol, SMBC will invest new capital of about ₹ 4,000 crore, which will increase its stake to 24.99%. This is the maximum limit as per RBI's permission. After this, SMBC is preparing to seek permission from RBI to get the promoter tag in Yes Bank. Yes Bank's stock closed at Rs 20.83 on 10 September 2025, up 2.4 percent
Once again a big change is going to come for Yes Bank. Japanese banking giant SMBC is not only going to infuse fresh capital in the bank but is also planning to give it promoter status in the coming time.
Preparation for capital infusion - According to sources, SMBC will invest primary capital of about ₹ 4,000 crore in Yes Bank. With this investment, its stake will increase from the current 20% to 24.99%. This is the limit that RBI had set during the approval last month. Yes Bank has already approved a capital raise plan of ₹ 16,000 crore through its board. Out of this, ₹ 7,500 crore will be raised through equity and the rest through debt. SMBC will be the lead investor of this round. Promoter - SMBC is the largest public shareholder in Yes Bank till now and it also has two board seats. But after infusing primary capital, this company will formally approach RBI to get the promoter tag. If approved, an open offer may also come as per the rules, although it is less likely to come before FY27. Regulator and investor trust - According to experts, RBI had also laid down the condition of infusing fresh capital in Yes Bank, which SMBC is now going to fulfill. This step will show that SMBC is committed for the long term and wants to remain seriously associated with Yes Bank. Bankers say that this initiative of the company is a positive signal for both the market and the regulator. Talks are also going on for this issue especially with mutual funds and other institutional investors. Role of Citigroup - Citigroup is playing an important role in structuring this entire deal. In May this year, SMBC took a stake in Yes Bank and now the new round is expected to be completed by December 2025. Meaning for investors- Investing fresh capital in Yes Bank will strengthen the balance sheet of the bank. With SMBC becoming the promoter, the bank will get the benefit of global management and governance. For shareholders, this move is a sign of long-term stability in the bank.
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