SMBC gets RBI approval for wholly owned arm

Stage set for a potential integration with Yes Bank

- MAHESH NAYAK

THE RESERVE BANK of India (RBI) on Wednesday granted an in-principle approval to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to establish a wholly owned subsidiary (WOS) in India.

With this approval, SMBC is set to become only the third foreign bank to receive a WOS licence in India, after State Bank of Mauritius and DBS Bank — the latter having merged with Lakshmi Vilas Bank (LVB) in 2020, leading to LVB’s dissolution as a standalone entity.

“The Reserve Bank of India (RBI) has decided to grant ‘in-principle’ approval to Sumitomo Mitsui Banking Corporation (SMBC), Japan for setting up a Wholly Owned Subsidiary (WOS) in India, under the Reserve Bank of India (Setting Up of Wholly Owned Subsidiaries by Foreign Banks) Guidelines, 2025,” the central bank said.