Reserve Bank of India (RBI) has approved proposed changes in Yes Bank’s Articles of Association (AoA) with regard to appointment of nominee directors on the board.

The changes relate to Sumitomo Mitsui Banking Corporation (SMBC) nominating two directors and State Bank of India (SBI) one to Yes Bank’s board after the stake transfer is completed.

SMBC proposes to acquire stakes of SBI and seven other lenders in Yes Bank. 

Yes Bank received approval from the RBI via a letter dated 9 September 2025, allowing the amendments to its AoA.

On 9 May, Yes Bank said SMBC intends to buy a 20% stake through a secondary purchase, including 13.19% from SBI and 6.81% from seven other lenders -- Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

Earlier this month, the proposed deal got clearance from the Competition Commission of India (CCI).

Last month, the RBI clarified that SMBC will not be categorised as a promoter of Yes Bank. 

SBI, which currently holds 24% of the bank, will see its stake dilute to a little over 10% after the transaction.