By Martin Shwenk Leade
Copyright indiatimes
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The State Bank of India (SBI) on Wednesday said that it has completed the divestment of a 13.18% stake in Yes Bank Limited to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for a consideration of about Rs 8,889 crore. The transaction involved the sale of 413.44 crore equity shares of Yes Bank at Rs 21.50 per share. SBI said the sale was executed after SMBC secured the necessary approvals from the Reserve Bank of India (RBI) on August 22, 2025, and from the Competition Commission of India on September 2, 2025.The deal follows the approval granted by SBI’s Executive Committee of the Central Board in May 2025. The agreement also included customary conditions precedent, which have now been met, allowing the transfer of shares to be completed.SBI shares were trading at Rs 842.90 apiece on the BSE, up 1.33% as of 12.20 PM on Wednesday. Meanwhile, Yes Bank’s shares were down by 0.24% at Rs 20.95 apiece.Live EventsSBI Chairman, Shri Challa Sreenivasulu Setty welcomed SMBC as a strategic partner through the largest cross-border transaction in India’s banking sector. “Yes Bank restructuring plan by RBI in 2020 was an innovative, first of its kind public sector – private sector partnership that was fully supported and facilitated by Government of India. We are incredibly proud of the journey we have shared with Yes Bank in supporting their transformation since we came onboard as the major shareholder in 2020. This is perhaps the best example of protecting the customer interests of a large bank by collaborative efforts of SBI and other banks under the guidance of Government of India and RBI.” he said. Also Read: Yes Bank stake sale- SBI, private banks set to reap a big tax bonanzaJapan’s largest bank had made a Rs 13,483-crore ($1.6 billion) deal to acquire 20% stake in Yes Bank and also marking its entry in Indian banking scene. SMBC, a wholly-owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), also received the Reserve Bank of India’s approval to appoint two nominee directors to Yes Bank’s board. SBI and seven private banks–HDFC Bank, ICICI Bank, Kotak Mahindra, Axis Bank, IDFC First Bank, Federal Bank and Bandhan Bank-had signed a definitive agreement to jointly sell 20% stake at Rs 21.50 a share. These banks had subscribed to the shares at Rs 10 each in 2020. Under the agreement, SBI has now sold 13.19% of its 24% stake for Rs 8,889 crore, while the remaining seven banks will sell 6.81% stake for ₹4,594 crore. Notably, SBI will continue to remain a shareholder of Yes Bank with Meanwhile, SMBC has approval from the RBI to raise its stake in Yes Bank up to 24.99%. It may acquire the remaining 4.99% stake either from the private equity firms Advent and Carlyle or subscribe to the preferential shares to be issued by the private bank, ET had reported on September 15.ET had reported on August 29 that SMBC is in talks with Yes Bank to infuse ₹16,000 crore in the lender through a combination of debt (₹8,500 crore) and equity (₹7,500 crore). The board of the bank has secured shareholders’ approval for the fundraising.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onyes bank stake saleyes bankSBI Yes Bank stake saledivestment SBI SMBCSBI SMBC transactionCompetition Commission of India approvalYes Bank equity sharessbi yes bank dealyes bank share price(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
