SBI, other lenders sell Yes Bank stake for Rs 13,483 crore in deal with Japan’s Sumitomo Mitsui Banking Corporation

State Bank of India (SBI) and seven other lenders announced on Friday the sale of 20 percent of their combined stakes in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for Rs 13,483 crore, marking the largest cross-border investment in the Indian banking sector. Upon completion of this transaction, SMBC will become the single largest shareholder of Mumbai-based Yes Bank.According to news agency PTI, SBI will offload 13.19 percent of its stake in Yes Bank, amounting to Rs 8,889 crore, while the remaining 6.81 percent will be sold by Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank, generating Rs 4,594 crore. The share sale will be conducted at Rs 21.50 per equity share.This sale follows the Yes Bank Reconstruction Scheme initiated in March 2020, when SBI and other lenders rescued the bank from financial distress. After the sale, SBI will retain just over 10 percent of Yes Bank, down from its current 24 percent stake.The participating lenders hold varying stakes, with HDFC Bank having 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 of 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 stated in a regulatory filing.The transaction is subject to regulatory and statutory approvals from the Reserve Bank of India (RBI) and the Competition Commission of India, as well as customary closing conditions.SMBC is a wholly-owned subsidiary of Sumitomo Mitsui Financial Group, Inc (SMFG), Japan’s second-largest banking group, with total assets of USD 2 trillion as of December 2024 and a strong global presence. SMBC is one of the leading foreign banks in India, and its parent company also owns SMFG India Credit Company Limited, one of the largest diversified non-banking financial companies (NBFCs) in India.The deal, if completed, could significantly reshape Yes Bank’s ownership and strategic direction. The bank, which narrowly avoided collapse in 2020, has made a remarkable recovery following a rescue led by SBI and other domestic financial institutions.Yes Bank’s MD and CEO, Prashant Kumar, commented on the deal, saying, "SMBC is a major shareholder whose investment marks a pivotal step in the next phase of the 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."Toru Nakashima, President and Group CEO of SMFG, and Akihiro Fukutome, President and CEO of SMBC, stated, "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 increase in standalone net profit, reaching Rs 738 crore compared to Rs 451.9 crore in the same quarter last year. For the full fiscal year FY25, Yes Bank's net profit doubled to Rs 2,406 crore, up from Rs 1,251 crore in FY24.Shares of Yes Bank surged 9.77 percent, closing at Rs 20 per unit on the BSE following the announcement.