SBI, 7 other lenders to sell 20% stake in Yes Bank to Japan's SMBC for Rs 13,483 crore

New Delhi: State Bank of India (SBI) and seven other lenders on Friday announced selling 20 percent of their combined stakes in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for a consideration of Rs 13,483 crore, making it the largest cross-border investment in the Indian banking sector.

Following completion of the transaction, SMBC will become the single largest shareholder of Mumbai-based Yes Bank.

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Of the 20 percent stake, SBI would dilute 13.19 percent stake in Yes Bank in favour of SMBC for a consideration of Rs 8,889 crore, while 6.81 percent shareholding will be offloaded by seven other lenders -- Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank -- for about Rs 4,594 crore.

SBI and the seven investor lenders had invested in the bank as part of the YES Bank Reconstruction Scheme in March 2020.

The share sale is proposed to take place at a price of Rs 21.50 per equity share, it said.

The executive committee of the central board (ECCB) of the bank in the meeting has accorded approval to divest 413.44 crore shares or equivalent to 13.19 percent stake in Yes Bank for a consideration of Rs 8,888.97 crore, SBI said in a regulatory filing.

SBI, which currently holds 24 percent stake in Yes Bank, will be left with a little over 10 percent stake after the dilution.

Among other lenders, HDFC Bank had 2.75 percent, ICICI Bank 2.39 percent, Kotak Mahindra Bank 1.21 percent, Axis Bank 1.01 percent, IDFC First Bank 0.92 percent, Federal Bank 0.76 percent and Bandhan Bank 0.70 percent as on March 31, 2025.

"This transaction is the largest cross-border investment in the Indian banking sector...the transaction is a significant milestone to drive YES Bank's next phase of growth, profitability and value creation and we expect to leverage SMBC's global expertise in this phase," Yes Bank said in a separate filing.

The transaction is subject to the necessary regulatory and statutory approvals including from the Reserve Bank of India and Competition Commission of India and will be subject to customary closing conditions, it said.

SMBC is a wholly-owned subsidiary of Sumitomo Mitsui Financial Group, Inc (SMFG). SMFG is the second largest banking group in Japan with total assets of USD 2 trillion as of December 2024 with strong global presence.

SMBC is among the leading foreign banks in India and SMFG's wholly-owned subsidiary SMFG India Credit Company Limited is among the largest diversified NBFCs in India.

The transaction, if completed, could reshape the ownership and strategic direction of Yes Bank — a lender that has seen a dramatic turnaround since its near-collapse in 2020, when a rescue led by SBI and other domestic financial institutions kept it afloat.

Commenting on the deal, Yes Bank MD and CEO Prashant Kumar said SMBC is a major shareholder whose investment marks a pivotal step in the next phase of bank's growth.

"We expect to benefit from their global expertise and high governance standards. This investment is a powerful endorsement of our transformation journey and future potential. Over the past few years, our growth has been shaped by the strong partnership and unwavering support of SBI and they will continue to remain a valued stakeholder," he said.

Toru Nakashima, President and Group CEO, SMFG, and Akihiro Fukutome, President and Chief Executive Officer, SMBC, said, "India represents a key market for us, and we see immense long-term potential in its dynamic and fast-growing economy. This investment aligns with our commitment to building lasting, value driven relationships in the region."

For the fourth quarter ended March 2025, Yes Bank reported a 63 percent jump in standalone net profit at Rs 738 crore as compared to Rs 451.9 crore in the corresponding quarter a year ago.

In FY25, the bank's net profit doubled to Rs 2,406 crore as compared to Rs 1,251 crore in the preceding fiscal year.

Shares of Yes Bank rose by 9.77 percent to close at Rs 20 per unit on the BSE.

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