RBI Grants In-Principle Approval to SMBC for Wholly Owned Subsidiary in India

The Reserve Bank of India (RBI) has granted in-principle approval to Japan's Sumitomo Mitsui Banking Corporation (SMBC) to establish a wholly owned subsidiary in India by converting its existing four branches in New Delhi, Mumbai, Chennai, and Bengaluru. This move will provide SMBC greater operational flexibility and treat it on par with domestic banks. SMBC, which acquired a 24% stake in Yes Bank in 2024, will become the fourth foreign lender to set up a wholly owned subsidiary in India, subject to RBI's final licensing upon meeting conditions.