SBI and 7 Lenders Offload 20% Stake in Landmark Cross-Border Deal
New Delhi, May 12 – Shares of Yes Bank soared over 8% on Monday morning after State Bank of India (SBI) and seven other prominent Indian lenders announced the sale of a combined 20% stake in the private lender to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for a total of Rs 13,483 crore.
On the Bombay Stock Exchange (BSE), Yes Bank’s stock jumped 8.7% to Rs 21.74; on the National Stock Exchange (NSE), it climbed 8.39% to Rs 21.70. This surge propelled the bank’s market capitalization by Rs 1,415.15 crore, reaching Rs 64,123.38 crore.
SMBC to Become Yes Bank’s Largest Shareholder
The strategic investment marks the largest-ever cross-border deal in the Indian banking sector. Upon completion of the transaction, SMBC will emerge as the single largest shareholder of Mumbai-based Yes Bank.As per the agreement, SBI alone will divest a 13.19% stake, equivalent to 413.44 crore shares, in exchange for Rs 8,888.97 crore. The remaining 6.81% stake will be sold collectively by Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank, contributing Rs 4,594 crore to the deal.
Strategic Exit from 2020 Reconstruction Investment
The divesting banks were part of the consortium that had invested in Yes Bank under the YES Bank Reconstruction Scheme in March 2020, when the lender faced a financial crisis.As disclosed in a recent regulatory filing, SBI confirmed the approval for the stake sale during its Executive Committee of the Central Board (ECCB) meeting.
This high-value transaction strengthens Yes Bank’s international alliances and reflects growing global investor confidence in India’s private banking sector.