Yes Bank Takeover: A Threat To India’s Banking Sovereignty

Congress Demands Judicial Probe into Dubious Foreign Takeover by Japan’s SMBC

Mumbai: The Indian National Congress has expressed deep concern and firm opposition to the proposed takeover of YES BANK by Japan’s Sumitomo Mitsui Banking Corporation (SMBC), calling it a direct threat to India’s banking sovereignty.

Congress leader and banking expert Vishwas Utagi said that this move represents a clear attempt to hand over control of a major Indian private bank to a foreign power. “This isn’t just a business transaction — it’s a matter of national economic security,” Utagi said.

According to media reports, SMBC has already invested ₹13,000 crore to acquire a 20% stake in YES BANK and is now preparing to invest an additional ₹30,000 crore to take majority control (51%). “This effectively amounts to a foreign corporate hijack of one of India’s key financial institutions,” Utagi stated.

Utagi said, if YES bank is healthy, then why is a foreign takeover been allowed? He said, YES bank’s current financial health negates any need for such a takeover: It’s CRAR is 18%, there are deposits of Rs 2.85 lakh crore and advances have been given worth Rs 2.48 lakh crore whereas the Investment in the bank is of Rs 86,000 crore.

“In such a sound financial position, why is the RBI permitting a foreign bank to assume control?” Utagi raised the question.
He further added, “What compulsion or hidden agenda is behind this move, when the bank is not under distress?”

Utagi reminded that YES BANK had been rescued in 2020 under the ‘Too Big to Fail’ principle by the RBI and the Central Government, with substantial investments from SBI and eight other banks — all using public money. SBI alone holds nearly 24% and has since led the bank’s operations.

“If YES BANK was worth saving with taxpayer money, why is it now being sold off to a Japanese bank without any public consultation?” Utagi asked. He added, “Is this a betrayal of public trust and taxpayers who saved the bank?

Utagi raised several questions about the silence and inaction of regulatory authorities: What is the role of the RBI as the banking regulator in safeguarding Indian institutions?, Why has the Ministry of Finance remained a mute spectator?, What has SEBI, as the market watchdog, done to protect shareholder interests?

A whistleblower’s forensic audit report covering 2014–2025 has entered the public domain. It reveals alarming irregularities in YES BANK’s operations, including: Balance sheet manipulation, Dubious sales of NPAs to ARCs and Misreporting of profits through non-accrued income

“This is a scam in the making,” Utagi said, adding that “the complete inaction on this forensic report by all concerned authorities smells of a deliberate cover-up.”

On behalf of the Congress Party, Utagi demanded the following: An immediate judicial probe into the YES BANK crisis and the foreign takeover, Public disclosure of the whistleblower’s forensic audit report, Full accountability from the RBI, SEBI, and Ministry of Finance, An urgent halt to the SMBC acquisition until all facts are brought to light.

Utagi warned that if the SMBC takeover is allowed, other Indian banks — including IDBI and even public sector banks — could be next in line for foreign takeovers.

“This isn’t just about YES BANK. It’s about protecting the backbone of our economy — our banking system,” Utagi said.

Utagi emphasised, “Congress strongly opposes the sale of Indian financial institutions to foreign entities under the false pretext of reform. We stand for the strengthening of domestic and public sector banks, not their surrender.

“The people of India and Parliament deserve answers,” Utagi asserted. Why was public money used to rescue YES BANK, only to sell it off later?, Why has no action been taken on the forensic audit findings?, Why is the Indian banking sector being exposed to foreign control?

“The Congress Party will raise this issue in Parliament and take it to the streets,” Utagi concluded. “We will not allow the financial interests of this nation to be compromised behind closed doors.”