SMFG to Acquire 20% Stake in Yes Bank, Set to Become Largest Shareholder Ahead of SBI
Yes Bank, in its Q1 FY26 investor presentation, revealed a major shift in its ownership structure, confirming that Sumitomo Mitsui Financial Group (SMFG) is set to become the bank’s largest shareholder. This development comes as Sumitomo Mitsui Corporation Bank (SMBC) enters a definitive agreement to acquire a 20% equity stake in the private sector lender, currently held by SBI and other Indian banks.
The bank hailed the deal as a strategic move to fuel its “next phase of growth, profitability, and value creation,” leveraging the global expertise of SMFG. Once the transaction is completed, SMBC will overtake State Bank of India (SBI), which currently holds a 24% stake, making it the dominant shareholder.
🏦 Shareholding Shift: What Changes
- SMBC (SMFG): Will acquire 20% stake
- SBI: Currently holds 24%, but will reduce post-sale
- Other Indian banks: Hold 9.7% stake combined
- Banks combined (post-deal): Will hold approximately 33.7%, but SMBC alone becomes largest individual holder
💼 Other Key Institutional Investors in Yes Bank:
- Verventa Holdings
- CA Basque Investments
- Life Insurance Corporation of India (LIC)
- HDFC Bank
- ICICI Bank
- Kotak Mahindra Bank
- Axis Bank
Yes Bank emphasized that SBI will continue to remain a key stakeholder, reinforcing its long-standing support and governance role in the bank’s journey.
🌍 International & Institutional Holdings:
- Foreign Institutional Investors (FIIs): ~13%
- Foreign Portfolio Investors (FPIs): ~11%
- Insurance Companies: ~4%
🏦 Strategic Significance:
This strategic alliance with SMFG is seen as a turning point for Yes Bank, not just in terms of capital but also in terms of operational strength and international credibility. SMFG’s subsidiary, SMFG India Credit Company, is already one of the largest diversified NBFCs in the country, further reinforcing the synergies anticipated from this partnership.
