Historic Banking Sector Deal

In a landmark transaction, State Bank of India (SBI) alongside seven other lenders, has sold a 20% stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for Rs 13,483 crore. This deal marks the largest cross-border investment in the Indian banking sector, propelling SMBC to become the single largest shareholder in Yes Bank.

Transaction Details

SBI will offload 13.19% of its stake, amounting to Rs 8,889 crore, while the remaining 6.81% will be sold by Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank, generating Rs 4,594 crore. The shares are priced at Rs 21.50 per equity share.

Post-Sale Implications

Following this sale, SBI's stake in Yes Bank will reduce to just over 10% from the current 24%. This move comes after the Yes Bank Reconstruction Scheme in March 2020, which saw SBI and other lenders rescue the bank from financial distress.

Strategic Growth and Future Prospects

Yes Bank views this transaction as a significant milestone for its next phase of growth, profitability, and value creation, aiming to leverage SMBC's global expertise. The deal, pending regulatory approvals, could reshape Yes Bank’s ownership and strategic direction, marking a pivotal step in its recovery and future growth.

Financial Performance and Market Reaction

Yes Bank reported a 63% increase in standalone net profit for Q4 March 2025, reaching Rs 738 crore. The announcement led to a 9.77% surge in Yes Bank's shares, closing at Rs 20 per unit on the BSE.