State Bank of India (SBI) and seven other lenders have announced the sale of 20% of their combined stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for ₹13,483 crore, marking the largest cross-border investment in the Indian banking sector.
Transaction Details
- SBI offloaded 13.19% of its stake in Yes Bank for ₹8,889 crore.
- The remaining 6.81% stake was sold by Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank, generating ₹4,594 crore.
- The share sale was conducted at ₹21.50 per equity share.
- Post-transaction, SBI will retain just over 10% of Yes Bank, down from its previous 24% stake.
Strategic Impact
This sale follows the Yes Bank Reconstruction Scheme initiated in March 2020, when SBI and other lenders rescued the bank from financial distress. The transaction is expected to drive Yes Bank’s next phase of growth, profitability, and value creation, leveraging SMBC’s global expertise.
SMBC’s Role & Future Plans
SMBC, a wholly-owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), is Japan’s second-largest banking group, with total assets of $2 trillion as of December 2024. The company has a strong global presence and is one of the leading foreign banks in India.
Yes Bank’s MD & CEO, Prashant Kumar, welcomed the investment, stating that SMBC’s entry marks a pivotal step in the bank’s transformation journey.
Regulatory Approvals & Market Reaction
The transaction is subject to regulatory and statutory approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI). Following the announcement, Yes Bank shares surged by 9.77% to ₹20 on the exchanges.
With SMBC’s backing, Yes Bank is expected to strengthen its financial position and expand its global partnerships, reinforcing its role as a key player in India’s banking sector.
