SBI sells 13% stake in Yes Bank for ₹8,889cr
What's the story
The State Bank of India (SBI) has sold its 13.18% stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC). The deal, worth around ₹8,889 crore, was done at ₹21.50 per share for a total of 413.44 crore equity shares. SBI said the sale was completed after SMBC got necessary approvals from the Reserve Bank of India and the Competition Commission of India.
Approval process
Deal approved by SBI's Executive Committee in May
The deal was approved by SBI's Executive Committee of the Central Board in May 2025. The agreement also had customary conditions precedent, that have now been met, enabling the transfer of stocks to be completed. As of Wednesday afternoon, SBI shares were trading at ₹846.15 apiece on the BSE while Yes Bank shares were down 0.43% at ₹20.91 apiece.
Venture
A look at the sale
SBI and seven private banks, HDFC Bank, ICICI Bank, Kotak Mahindra, Axis Bank, IDFC First Bank, Federal Bank and Bandhan Bank, had signed a definitive agreement to sell a 20% stake at ₹21.50 per share. These banks had bought the shares at ₹10 each in 2020. Under this agreement, SBI has sold 13.18% of its 24% stake for ₹8,889 crore, while the remaining seven banks will sell a 6.81% stake for ₹4,594 crore.
Future prospects
SMBC gets nod to raise stake in Yes Bank
SMBC has received RBI's nod to raise its stake in Yes Bank up to 24.99%. It could buy the remaining 4.99% stake from the private equity firms Advent and Carlyle or subscribe to preferential shares that will be issued by the private bank.