SBI divests 13.18% stake in Yes Bank to Sumitomo Mitsui Banking Corp for ₹8,889 crore

By Admin

18 Sep, 2025

State Bank of India (SBI), the country’s largest lender, has announced the successful completion of a significant divestment in Yes Bank. On Wednesday (September 17, 2025), SBI revealed that it has sold 13.18% stake in Yes Bank to Sumitomo Mitsui Banking Corporation (SMBC) of Japan for a consideration of ₹8,888.97 crore.

Background: SBI’s Role in Yes Bank’s Revival

SBI became the largest shareholder in Yes Bank in March 2020 under the Reconstruction Scheme 2020, as notified by the central government. This strategic intervention was aimed at stabilizing the private sector bank, which was then facing a financial crisis.
Later, in July 2020, SBI further increased its stake by acquiring additional shares through Yes Bank’s follow-on public offer (FPO).

Details of the Transaction

• SBI sold 13.18% stake in Yes Bank to SMBC.
  
  

• The transaction fetched ₹8,888.97 crore for SBI.
  
  

• Post divestment, SBI will continue to hold 10.8% stake in Yes Bank.
  
  

• The transaction has received approvals from the Reserve Bank of India (RBI), the Competition Commission of India (CCI), and other necessary regulators.
  
  

This stake sale, along with participation from other shareholder banks, represents the largest cross-border investment in the Indian banking sector to date.

About SMBC and Its Presence in India

SMBC, a leading multinational financial services company, belongs to the Sumitomo Mitsui Financial Group (SMFG) the second-largest banking group in Japan with total assets of around $2 trillion.
SMFG already holds a strong presence in India as one of the leading foreign banks and has been expanding its strategic footprint in the region.

SBI Chairman’s Statement

SBI Chairman C.S. Setty highlighted the significance of this milestone, saying:

• The RBI’s 2020 restructuring plan for Yes Bank was an innovative, first-of-its-kind collaboration between public and private sector banks.
  
  

• SBI is proud to have played a leading role in safeguarding the interests of Yes Bank’s customers during its transition phase.
  
  

• The arrival of SMBC as a strategic partner marks a new era for Yes Bank, bringing in global expertise that will support the bank’s transformation and future ambitions.
  
  

He added, “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 the government and RBI.”

Advisory and Support

SBI and other selling shareholder banks were advised by SBI Capital Markets Limited as their financial advisor for the transaction.

Conclusion

The successful stake sale underscores the resilience of India’s banking sector and the confidence of global investors in its growth potential. With SMBC’s global expertise and continued support from SBI, Yes Bank is well-positioned to strengthen its operations and pursue ambitious growth strategies in the years ahead.