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.