India Business Update: Yes Bank Boost, EU Trade Shift, Nepal Crisis, and More

Secures Major Capital Infusion from Sumitomo Mitsui Japanese banking giant Sumitomo Mitsui Banking Corporation (SMBC) is set to inject Rs 16,000 crore ($1.83 billion) into Yes Bank through a mix of equity and debt, aiming to bolster the private lender’s balance sheet. This follows SMBC’s earlier commitment of Rs 13,500 crore to acquire a 20% stake, primarily from State Bank of India (SBI) and other shareholders like HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. The Reserve Bank of India (RBI) has approved SMBC’s plan to hold up to 24.99% of Yes Bank’s shares, though the Japanese bank’s bid for promoter status remains under review, pending further commitments and regulatory formalities. The infusion, including Rs 8,500 crore in low-cost yen-denominated bonds and Rs 7,500 crore in equity, is expected to improve Yes Bank’s net interest margin, currently at 2.5% as of June 2025, one of the lowest in the sector. SMBC is also exploring options to acquire an additional 4.99% stake, potentially through negotiations with private equity firms Advent International and Carlyle Group or via fresh equity issuance. This strategic move signals growing foreign interest in India’s banking sector and could enhance Yes Bank’s governance and growth prospects