Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received the Reserve Bank of India’s (RBI) approval to acquire up to 24.99% stake in Yes Bank, the private sector lender announced on Saturday.The development comes after Yes Bank’s May 9 disclosure about SMBC’s plan to purchase a 20% holding in the bank through a secondary stake buy, 13.19% from the State Bank of India and 6.81% from seven other shareholders. These include Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.“In this regard, we are pleased to inform that SMBC has received the approval of the Reserve Bank of India (RBI) to acquire up to 24.99% of the paid-up share capital/ voting rights of the Bank vide letter dated August 22, 2025,” Yes Bank said in a regulatory filing.The bank added that the approval is valid for one year from the date of the RBI’s letter. Importantly, the central bank clarified that SMBC would not be classified as a promoter of Yes Bank following the acquisition.The RBI’s nod comes with several conditions. These include compliance with the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated 16 January 2023 (as amended from time to time), the Foreign Exchange Management Act, 1999, and other applicable laws.Yes Bank also noted that lock-in requirements, subsequent transactions, and RBI’s decisions would continue to apply.In addition, the proposed deal will need clearance from the Competition Commission of India (CCI) and fulfil customary conditions precedent mentioned in agreements referred to in Yes Bank’s May 9 filing.