M&A Lab

In 2025, Japan’s second-largest banking group executed a landmark cross-border transaction by acquiring a 24.21% stake in India’s Yes Bank for approximately INR 163.33 billion (~USD 1.86 billion). This was one of the most significant cross-border transactions in India’s financial sector which marks a shift for an institution that was at the centre of a severe liquidity crisis just five years prior.

Through a deep dive into this deal, this case study explores how SMBC expertly structured its entry into India's high-growth economy. It executed a coordinated multi-stage acquisition from the domestic bank consortium that rescued Yes Bank in 2020 and private equity firm Carlyle to take a significant stake in Yes Bank. Beyond the financials, this transaction represents a critical regulatory turning point. It highlights the RBI’s shift toward a "prudential liberal regime," where standard ownership caps were relaxed to welcome a global strategic partner in the pursuit of systemic resilience.

In this M&A Lab, we analyse the legal, regulatory, and tax dimensions of SMBC's investment in Yes Bank, reflecting both the complexity of foreign capital entry into India's tightly regulated banking sector and the broader strategic significance of this transaction for the Indian financial system.

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Sonakshi Babel, Gurkeerat Singh, Kamini Toprani, Sach Chabria, Morvi Chaturvedi, Joachim Saldanha, Muqeet Drabu and Nishchal Joshipura
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