RBI grants 'in-principle' nod to Japan's SMBC for setting up wholly owned subsidiary

Mumbai, Jan 14 (PTI) The Reserve Bank of India (RBI) on Wednesday said it has granted "in-principle" approval to Sumitomo Mitsui Banking Corporation (SMBC), Japan, for setting up a wholly owned subsidiary in India.

SMBC is currently carrying on banking business in India in branch mode through its four branches in New Delhi, Mumbai, Chennai, and Bengaluru.

"The in-principle approval has been granted to the bank for setting up a wholly owned subsidiary (WOS) through conversion of its existing branches in India," the RBI said in a statement.

The central bank further said it will consider granting a licence for commencement of banking business in the wholly owned subsidiary to SMBC on being satisfied that the bank has complied with the requisite conditions laid down by the RBI as part of 'in-principle' approval.

In 2025, SMBC acquired 24.22 per cent stake in private sector lender YES Bank, to become its largest shareholder, while SBI continues to hold a significant stake of over 10 per cent. PTI NKD NKD TRB TRB