Japan's SMBC gets Indian central bank approval to buy up to 24.99% of Yes Bank

MUMBAI (Reuters) - Japan's Sumitomo Mitsui Banking Corporation (SUMFDS.UL) has received Indian central bank approval to buy up to 24.99% of India’s Yes Bank, the Indian bank said in a stock exchange filing on Saturday.

The Reserve Bank of India has also decided that SMBC would not be treated as a "promoter" of Yes Bank following the deal, which would have involved additional regulatory requirements, Yes Bank said.

In May, the banks informed exchanges that SBMC had inked a deal to take a 20% stake in Yes Bank for $1.6 billion, making it the largest cross-border merger and acquisition deal in India's financial sector.

Sources familiar with the matter told Reuters last month that SMBC was seeking approval to buy an additional 4.9% stake in Yes Bank.