SBI Finalises ₹8,889 Crore Sale of Yes Bank Stake to Japan’s Sumitomo Mitsui

The State Bank of India (SBI) has completed the sale of a 13.18% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC), securing ₹8,889 crore from the deal. This divestment forms a major part of a larger ₹13,483 crore transaction that marks SMBC’s entry into the Indian banking market.

Stake Sale Details

SBI transferred 413.44 crore Yes Bank share price at ₹21.50 per share to SMBC. This transaction was cleared after regulatory approvals from the Reserve Bank of India (RBI) on August 22, 2025 and from the Competition Commission of India (CCI) on September 2, 2025. Earlier, SBI’s Executive Committee of the Central Board had approved in May 2025, paving the way for the deal’s completion once all conditions were met.

Market Performance

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Following the announcement, market reactions were mixed. On September 17,  2025, as of 1:38 PM, SBI stock on the National Stock Exchange was trading at ₹847 per share, a rise of 1.82%. In contrast, Yes Bank’s stock slipped by 0.24%, trading at ₹20.94 per share.

SMBC’s Foray into Indian Banking

SMBC, a wholly owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), is Japan’s largest bank. Through this deal, SMBC is set to acquire a 20% stake in Yes Bank with an investment commitment of ₹13,483 crore (around $1.6 billion). The agreement also gives SMBC the right to appoint two nominee directors to Yes Bank’s board, strengthening its strategic presence in India’s growing financial sector.

Role of Other Banks

SBI was not the only lender participating in the divestment. Seven private sector banks—HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank—have also agreed to sell part of their holdings in Yes Bank at the same price of ₹21.50 per share. Together, these banks will offload a combined stake worth ₹4,594 crore.

The private banks, along with SBI, had initially subscribed to Yes Bank shares in 2020 at ₹10 per share when the bank was undergoing restructuring. Their current divestments mark a significant step in the ongoing restructuring and revival of Yes Bank.

Conclusion

Private banks are also seeing returns on their prior investments, and SBI has sold 13.18% of its 24% stake in Yes Bank in this transaction.  The transaction signifies SMBC's strategic entry into one of the fastest-growing financial markets in the world and emphasises the strengthening of international banking relationships in India.