SBI Sells 13.18% Stake in Yes Bank to Japan’s SMBC

In a landmark cross-border transaction in India’s banking sector, the State Bank of India (SBI) has completed the sale of 13.18% stake in Yes Bank to Sumitomo Mitsui Banking Corporation (SMBC) for a total consideration of ₹8,889 crore. The deal reflects increased global investor confidence in India’s banking reforms and sets the stage for deeper strategic ties between Indian banks and global financial institutions.

Deal Details and Timeline

Transaction Summary

• Stake Sold: 13.18%
• Number of Shares: 413.44 crore equity shares
• Total Deal Value: ₹8,889 crore

Regulatory Approvals

• RBI Approval: August 22, 2025
• CCI Approval: September 2, 2025
• SBI Board Approval: May 2025

Following all required clearances, the transfer of shares was completed as per the agreement’s customary conditions precedent.

Strategic Significance of the Deal

Largest Cross-Border Bank Deal in India

• The transaction as a significant example of public-private collaboration, noting its roots in the 2020 RBI-led Yes Bank restructuring plan, which brought together public and private banks to rescue the troubled lender.

SMBC’s Expansion in India

• SMBC, a wholly-owned subsidiary of Sumitomo Mitsui Financial Group, now holds a substantial stake in Yes Bank.
• The Japanese lender has RBI approval to raise its stake up to 24.99%, which may involve additional purchases from Advent, Carlyle, or preferential allotments.

Role of Other Banks

SBI and seven other banks — including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank — had originally invested in Yes Bank at ₹10 per share in 2020.

• Combined Sale: 20% stake
• Private Banks’ Share: 6.81% sold for ₹4,594 crore
• SBI’s Share: 13.18% sold for ₹8,889 crore

SBI continues to retain a minority stake in Yes Bank post-sale.

Static Facts

• Stake Sold: 13.18% by SBI
• Purchaser: Sumitomo Mitsui Banking Corporation (SMBC), Japan
• Deal Value: ₹8,889 crore
• SBI Chairman: Challa Srenivasalu Setty