SMFG is looking to double down on India. After already investing $1.6 billion in Yes Bank just two months ago, Japan’s second-biggest bank is now eyeing another $1.1 billion investment. This new move could push SMFG’s total stake in Yes Bank close to 25%.
According to people in the know, SMFG wants to buy about 5% more of Yes Bank’s shares. These would come from current minority investors like the Carlyle Group. On top of that, SMFG might also invest $680 million in convertible bonds issued by Yes Bank to help the Indian lender grow faster.
If this plan goes through, the total investment from SMFG would hit $2.7 billion. That’s a bold play for any foreign investor—and a huge sign of faith in India’s banking future.
Yes Bank has come a long way since its 2020 crisis when it was nearly sinking under bad loans. The Reserve Bank of India stepped in, and the State Bank of India (SBI) helped rescue it with fresh capital. Since then, Yes Bank has worked on a slow but steady comeback.
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So why is SMFG so interested?
For SMFG, this is about more than just one bank. It’s about India. The company already spent $700 million last year to fully take over Fullerton India Credit Co., after an earlier $2 billion investment. They’re clearly bullish on India’s growing middle class, rising credit demand, and digital finance boom.
Yes Bank shares are already up 2.1% this year. Its market value is around $7.3 billion. If SMFG gets its 25% stake, it won’t just be a passive investor—it will be one of the biggest players in the Indian private banking space.
Right now, talks are ongoing, and nothing is final. All the major players, including SMFG, Carlyle, and Yes Bank, have refused to comment. But behind closed doors, this could be a game-changer.
India’s banking sector is hot, and global giants like SMFG are clearly taking notes.
If SMFG pulls this off, it’s not just a power move in Indian banking. It’s proof that global money trusts India’s future—and it’s putting serious skin in the game.
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