State Bank of India (SBI), the country’s largest public sector lender, has decided to sell a 13.19% stake in Yes Bank to Japan-based Sumitomo Mitsui Banking Corporation (SMBC). The deal values the stake at Rs 8,889 crore, with each share priced at Rs 21.50.
According to a stock exchange filing, SBI’s Executive Committee approved the sale of 413.44 crore equity shares of Yes Bank in a meeting held on May 9, 2025. The deal is subject to all necessary regulatory and statutory approvals.
SBI’s Investment in Yes Bank: A Quick Look
SBI had acquired a major stake in Yes Bank back in March 2020 when the Reserve Bank of India (RBI) took control of the troubled private lender. At that time, SBI led a rescue plan by investing Rs 7,250 crore to buy a 49% stake at Rs 10 per share.
Over time, SBI’s stake reduced to 24% due to dilution and capital raising by Yes Bank.
Post-Deal Shareholding
After selling 13.19% to SMBC, SBI will hold around 10.81% in Yes Bank.
Here is a snapshot of major shareholders in Yes Bank as of the March 2025 quarter:
SBI: 24% (before the deal)
HDFC Bank: 2.75%
ICICI Bank: 2.39%
Kotak Mahindra Bank: 1.21%
Axis Bank: 1.01%
LIC: 3.98%
Deal Highlights
Buyer: Sumitomo Mitsui Banking Corporation (SMBC)
Seller: State Bank of India (SBI)
Stake Sold: 13.19%
Number of Shares: 413.44 crore
Price per Share: Rs 21.50
Total Deal Value: Rs 8,889 crore
Why This Matters
This is a major divestment move for SBI, unlocking value from its earlier investment. For SMBC, this marks a significant entry into India’s banking sector through a strategic stake in Yes Bank.
Yes Bank’s recovery and strategic partnerships could get a boost with this development, signaling improved investor confidence in the private lender.
Be First to Comment