RBI Gives In-Principle Approval to Sumitomo Mitsui Banking Corporation to Set Up a Wholly Owned Subsidiary

Mumbai: The Reserve Bank of India has granted in-principle approval to Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) to set up a wholly owned subsidiary (WOS) in the country.

Reportedly, SMBC was preparing since June 2025 to approach the RBI for approval to convert its India operations into a WOS. As a result of the approval, State Bank of India and other banks are likely to sell their remaining combined stake of nearly 14% in Yes Bank to SMBC. Presently, SMBC holds close to a 25% stake in Yes Bank, most of which it acquired in May 2025.

Setting up a WOS will allow SMBC to acquire a majority stake in Yes Bank. However, Yes Bank has denied that any such plan is underway.

In India, SMBC has 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.

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