SMBC's Yes Bank stake hike follows SBI's sell-off
Japan's Sumitomo Mitsui Banking Corporation (SMBC) just got the go-ahead to boost its stake in Yes Bank from 20% to 24.99%.
This follows State Bank of India (SBI) dialing back its own share, and it's all part of a major restructuring plan that started back in 2020 when SBI stepped in as Yes Bank's top shareholder.
SMBC is acquiring an additional 4.2% stake
SMBC is buying an extra 4.2% stake from a Carlyle Group affiliate for $349 million (about ₹3,100 crore).
Their earlier 20% chunk came partly from SBI and Kotak Mahindra Bank.
This deal stands out as the largest cross-border investment in India's banking sector.
SBI sold off over 13% of its Yes Bank shares
To make this happen, SBI sold off over 13% of its Yes Bank shares to SMBC for around $1 billion but still holds about 10.8%.
Meanwhile, SMBC also exited its small stake in Kotak Mahindra Bank to rebalance its strategic investment portfolio.
For both banks, it's a strategic play to strengthen their positions in India's fast-changing financial scene.