On September 9, 2025, Yes Bank received a formal letter from the RBI allowing the amendments to its Articles of Association (AoA). Yes Bank wanted to change its rulebook (Articles of Association) so that big investors could have the right to appoint their own people on the bank’s board of directors (the people who help guide and oversee how the bank is run).
Since Yes Bank is a bank, it needed approval from the Reserve Bank of India (RBI) to make these changes. The RBI has now said yes, allowing these new rules to come into effect.
What is the deal between SMBC and Yes Bank?
A large Japanese bank called Sumitomo Mitsui Banking Corporation (SMBC) is planning to buy shares in Yes Bank. SMBC will be buying some of those shares from SBI (State Bank of India) and other earlier investors who helped Yes Bank during its crisis a few years ago.
SMBC is planning to buy a 20% stake in Yes Bank — 13.19% from the State Bank of India (SBI), and the remaining 6.81% from seven other Indian banks: Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank. This deal has already been approved by the Competition Commission of India (CCI).
What happens after the deal?
Once the deal is done:
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SMBC will be allowed to nominate 2 directors to Yes Bank’s board.
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SBI will be allowed to nominate 1 director.
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SBI’s ownership in Yes Bank will drop from 24% to just over 10%. This means SBI will no longer be the dominant shareholder, reducing its control over the bank.
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Despite owning 20%, SMBC will not be considered a “promoter”, meaning it won’t have full control over Yes Bank. Being a promoter typically means having significant control or influence over a company’s decisions. Since SMBC won’t hold this status, it will have a strategic but not controlling role in Yes Bank’s governance.
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This deal gives both SMBC and SBI a say in how the bank is run.
Currently Yes Bank is showing strong profits and financial improvement and is performing much better than before. Profit for Jan–Mar 2025 was ₹738 crore (up 63% from the same time last year). And Profit for the full year (FY25) was ₹2,406 crore (almost double from ₹1,251 crore in FY24)
Explanation of Few Financial Terms used here:
Articles of Association (AoA) – AoA are like the rulebook for how a company is governed—covering board appointments, voting rights, etc.