The report had noted that once the Japanese lender secures approval to operate as a wholly owned subsidiary, State Bank of India and other banks are likely to sell their remaining combined stake of nearly 14% in Yes Bank to SMBC.
Currently, SMBC holds close to a 25% stake in Yes Bank, most of which it acquired in May 2025. The move to transition from a branch-based presence to a full-fledged subsidiary would enable SMBC to acquire a majority stake in Yes Bank, the report had said. Yes Bank, however, has denied that any such plan is under way.
In India, SMBC operates through four branches located in New Delhi, Mumbai, Chennai and Bengaluru, in addition to a branch at the International Financial Services Centre (IFSC) in GIFT City, Gujarat. “The in-principle approval has been granted to the bank for setting up a wholly owned subsidiary through the conversion of its existing branches in India,” the RBI said in a statement.