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

SBI and other Indian lenders approve the sale, marking the largest foreign investment in India's banking sector, pending regulatory clearances.

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Overview

  • State Bank of India (SBI) has approved selling a 13.19% stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,889 crore at ₹21.50 per share.
  • An additional 6.81% stake will be sold by seven other Indian lenders, bringing SMBC's total acquisition to 20% for ₹13,483 crore.
  • The transaction, which reflects a 167% return on SBI's initial 2020 investment, requires regulatory approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
  • Yes Bank's shares surged nearly 11% over the past week, driven by market optimism surrounding the deal and the bank's improved Q4 performance.
  • Yes Bank CEO Prashant Kumar and SMBC executives highlighted the deal as a major endorsement of the bank's transformation and a step toward leveraging SMBC's global expertise.