Yes Bank Gets Foreign Boost From Japan’s SMBC, But SEBI Analyst Warns Financials Remain Fragile

The analyst said the investment will strengthen Yes Bank’s balance sheet and improve access to cheaper funding, but caution is advised.

Shares of Yes Bank rose about 2% on Wednesday after Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) secured approvals from Indian regulators to buy up to 24.99% in the private bank.

Regulatory Details

India’s Competition Commission has approved SMBC’s plan to pick up nearly a quarter of Yes Bank’s shares and voting rights. 

SMBC is part of Sumitomo Mitsui Financial Group, Japan’s second-biggest bank with $2 trillion in assets at the end of 2024 and a broad international presence. 

The clearance comes just weeks after the Reserve Bank of India also approved SMBC’s proposal to pick up nearly a quarter of Yes Bank’s equity.

Capital Boost And Competitiveness

SEBI-registered analyst Mayank Singh Chandel said the fresh ₹16,000 crore capital infusion strengthens Yes Bank’s financial stability, enhances its lending power, and could improve its credit ratings. 

He also said Yes Bank will gain access to cheaper Japanese yen loans via SMBC, lowering funding costs and boosting competitiveness against large peers like HDFC Bank and ICICI Bank.

Caution Despite Global Backing

Chandel added that SMBC’s investment makes Yes Bank stronger and more stable, but without giving it complete control. 

For Yes Bank, he said this means fresh capital, global support, and lower borrowing costs. For India, he said the deal reflects foreign confidence in the banking sector. 

However, he said that despite this positive step, Yes Bank’s financials are still weak, so investors should stay cautious for now.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘neutral’ amid ‘normal’ message volume.

Yes Bank’s stock has risen 1.6% so far in 2025.

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