In a significant development for India's banking sector, the Reserve Bank of India (RBI) has given its approval for Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to a 24.99% stake in Yes Bank . This move marks a substantial foreign investment in one of India's private sector banks, potentially reshaping its ownership structure.

Key Highlights of the Approval

• The RBI has granted SMBC permission to acquire up to 24.99% of Yes Bank's paid-up share capital or voting rights.
• Despite the significant shareholding, SMBC will not be designated as a promoter of Yes Bank.
• The approval is valid for one year from August 22, 2025, as per the RBI's letter.

Transaction Details

The approved stake acquisition is part of a larger transaction that Yes Bank had previously disclosed to the stock exchanges on May 9, 2025. The proposed deal includes:

• A secondary stake purchase of 13.19% from the State Bank of India
• An additional 6.81% stake acquisition from seven other shareholders, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank

Regulatory Conditions

The RBI's approval comes with several conditions:

• Compliance with relevant provisions of the Banking Regulation Act, 1949
• Adherence to RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies
• Compliance with the Foreign Exchange Management Act, 1999
• Other applicable laws and terms, including lock-in periods

Next Steps

While the RBI's approval is a crucial milestone, the transaction still faces some hurdles:

• Approval from the Competition Commission of India (CCI) is pending
• Customary conditions precedent as mentioned in the agreements need to be fulfilled

Implications for Yes Bank

This approval paves the way for a significant capital infusion into Yes Bank, potentially strengthening its financial position. The involvement of SMBC, a major global banking player, could bring international expertise and potentially enhance Yes Bank's operational capabilities.

However, it's important to note that despite the substantial stake, SMBC will not have promoter status, which could have implications for the bank's governance structure.

Yes Bank has stated that it will host the information regarding this approval on its website, www.yesbank.in , in compliance with SEBI regulations.

As this development unfolds, it will be closely watched by investors, regulators, and the broader banking industry for its potential impact on Yes Bank's future trajectory and the evolving landscape of India's banking sector.

Yes Bank , one of India's prominent private sector banks, has announced a significant leadership decision and received strong shareholder support for several key initiatives at its 21st Annual General Meeting (AGM).

CEO Tenure Extension

Yes Bank has extended the tenure of its Managing Director and Chief Executive Officer, Prashant Kumar, until April 5, 2026. This decision, approved by the bank's shareholders at the AGM held on August 21, 2025, ensures continuity in the bank's top leadership. Kumar, who has been at the helm since March 2020, has played a crucial role in the bank's turnaround and stabilization efforts.

AGM Highlights

The 21st AGM, conducted through video conferencing, saw shareholders approving all 11 resolutions proposed by the board with overwhelming majority. Key approvals include:

1. Adoption of audited financial statements for FY 2024-25
2. Appointment of M/s. BNP & Associates as Secretarial Auditors
3. Appointment of Shivakumar Dega as a Non-Executive Director
4. Extension of Prashant Kumar's tenure as MD & CEO
5. Approval of material related party transactions with State Bank of India
6. Implementation of the 'YBL Restricted Stock Units Plan 2025'
7. Special rights granted to Verventa Holdings Limited, Sumitomo Mitsui Banking Corporation, and State Bank of India
8. Approval for raising funds through issuance of equity and debt securities

Financial Performance

Yes Bank's Non-Executive Chairman, Rama Subramaniam Gandhi, highlighted the bank's robust financial performance for FY 2024-25:

Strategic Initiatives

The bank has been focusing on several strategic areas:

1. Digital Capabilities: Implemented comprehensive digital onboarding journeys and launched seamless GST payment solutions
2. Partnerships: Actively collaborating with fintechs and corporates to augment digital offerings
3. Corporate Governance: Strengthening governance framework and risk management practices
4. ESG Integration: Achieved the highest S&P Global ESG score and CDP rating for climate disclosures among Indian banks for the third consecutive year

Future Outlook

Yes Bank remains committed to delivering sustainable growth and long-term value for all stakeholders. The bank plans to continue investing in innovation, strengthening governance practices, and deepening its ESG commitments.

The extension of Prashant Kumar's tenure and the strong shareholder support for various resolutions indicate confidence in the bank's current leadership and strategic direction. As Yes Bank moves forward, it aims to build on its recent performance improvements and contribute to India's economic development while enhancing shareholder value.