SBI Sells Majority of Its Yes Bank Stake to Japan’s SMBC for ₹8,889 Crore

State Bank of India (SBI) has completed the sale of a 13.18% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for around ₹8,889 crore. The deal involved selling 413.44 crore shares at ₹21.50 per share, after SMBC received all necessary approvals from the Reserve Bank of India (RBI) and the Competition Commission of India earlier this month; Economic Times reported.

This transaction is part of a larger agreement in which SBI and seven private sector banks together committed to sell a 20% stake in Yes Bank. While SBI sold the majority portion, the remaining 6.81% stake will be divested by HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank and Bandhan Bank, raising another ₹4,594 crore.

Despite the sale, SBI will continue to remain a shareholder in Yes Bank. SMBC, which is a subsidiary of Sumitomo Mitsui Financial Group, has approval to increase its shareholding up to 24.99%. Reports suggest it may do so by buying shares from private equity investors Advent and Carlyle, or by subscribing to fresh shares issued by Yes Bank.

The SBI Chairman, Challa Sreenivasulu Setty, welcomed SMBC as a strategic partner, calling the deal the “largest cross-border transaction in India’s banking sector.” He also reflected on the journey since 2020, when RBI’s rescue plan for Yes Bank brought public and private lenders together to stabilise the troubled bank.

SMBC’s entry into India comes alongside its wider plan to invest in Yes Bank. Reports indicate it may inject up to ₹16,000 crore through a mix of debt and equity to further strengthen the private lender’s balance sheet.

On the markets, SBI shares traded 1.33% higher at ₹842.90, while Yes Bank’s stock was slightly down at ₹20.95 at midday on Wednesday.