State Bank of India (SBI) has completed the sale of its 13.18% stake in Yes Bank Ltd. to Sumitomo Mitsui Banking Corp. (SMBC) for ₹8,888.97 crore. The Japanese financial services company has transferred the amount as per an exchange filing on Wednesday. This transaction was approved by both the Reserve Bank of India (RBI) and the Competition Commission of India.
Despite the sale, SBI will retain a 10.8% stake in Yes Bank, continuing its involvement with the private lender. SBI initially acquired a 49% stake in Yes Bank in March 2020 for ₹7,250 crore as part of RBI’s restructuring plan for the troubled bank. Later, in July 2020, SBI further increased its holdings through a follow-on public offer by Yes Bank.
SBI Chairman, CS Setty, expressed pride in their partnership with Yes Bank and praised the 2020 restructuring plan as an innovative collaboration between the public and private sectors. Setty also welcomed SMBC as a strategic partner, noting their global expertise will complement Yes Bank’s future ambitions.
The transaction is the largest cross-border investment in India’s banking sector. SMBC is Japan’s second-largest banking entity with assets totaling $2 trillion.
