Japan’s second-largest bank Sumitomo Mitsui Financial Group (SMFG) is planning to invest another $1.1 billion in Yes Bank. SMFG had already invested $1.6 billion in Yes Bank in May 2025. Now, it’s planning to invest another $1.1 billion. If this goes through, the total investment will be $2.7 billion, and SMFG could end up owning around 25% of Yes Bank.
SMFG’s Strategic Outlook for India:
SMFG is planning to buy about 5% of Yes Bank’s shares from the Carlyle Group (a U.S. investment company) and some other small investors. SMFG is also planning to spend $680 million on special bonds called convertible bonds. These are like loans for now, but SMFG can turn them into Yes Bank shares in the future. All together these steps will help SMFG increase its stake in Yes Bank.
In 2021, SMFG entered India’s lending market with a $2 billion stake in Fullerton India Credit. In 2023, it spent $700 million more to fully take over the company, which gives loans for housing and cars.
Why SMFG is investing in Yes Bank?
SMFG believes Yes Bank is recovering well from its past financial troubles (it was rescued in 2020 due to bad loans). It sees this as a big opportunity to own a major stake in a growing Indian bank. SMFG is showing strong confidence in Yes Bank and India’s financial sector. If the deal goes through, it’ll become a major shareholder in Yes Bank, helping the bank grow and benefiting from India’s economic rise.
Other Japanese firms are also increasing their investments in India, which is one of the world’s fastest-growing major economies.
Also Read: SMBC (Japanese Financial Giant) in Advanced Discussions to Acquire Significant Stake in Yes Bank.