Yes Bank Plans to Raise Rs 16,000 Crore with Strategic Investment from Japan's SMBC

Yes Bank has announced a major capital-raising initiative totaling Rs 16,000 crore, with plans to raise Rs 7,500 crore through equity and Rs 8,500 crore via debt. The decision was approved by the bank's board on June 3 and reflects a significant shift in the bank's capital structure and governance.

The fundraise is supported by Japan’s Sumitomo Mitsui Banking Corporation (SMBC), which is set to become a strategic investor in Yes Bank. As part of the agreement, SMBC will gain the right to maintain its ownership stake in future share issuances and will be entitled to nominate two directors to the Yes Bank board. Additionally, the State Bank of India (SBI) will continue to have the right to nominate one director.

The board also approved key amendments to the bank’s articles of association to formalize these changes. The proposals are subject to shareholder and regulatory approvals.

This development signals a new phase for Yes Bank as it strengthens its capital base and brings in a global partner with long-term strategic interest.