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2mo ago

Japan’s SMBC to Acquire 20% Stake in Yes Bank for ₹13,483 Crore

SBI and seven Indian lenders divest shares to SMBC in a landmark deal, pending regulatory approvals, marking one of the largest foreign investments in India’s banking sector.

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Overview

  • State Bank of India (SBI) has approved the sale of 13.19% of Yes Bank shares to Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,889 crore.
  • Seven other Indian lenders, including ICICI Bank, HDFC Bank, and Axis Bank, will sell a combined 6.81% stake, bringing the total transaction value to ₹13,483 crore.
  • The deal, priced at ₹21.50 per share, is subject to regulatory and statutory approvals, including from the Reserve Bank of India and the Competition Commission of India.
  • Following the transaction, SMBC will become the largest shareholder in Yes Bank, while SBI’s stake will reduce from 23.97% to 10.78%.
  • Yes Bank leadership views the investment as a pivotal step in its growth, leveraging SMBC’s global expertise and governance standards to drive its transformation.