In a major financial move, State Bank of India (SBI) has finalised the sale of its 13.18% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,888.97 crore. The transaction involved the transfer of 413.44 crore equity shares at ₹21.50 per share.
Though SBI has divested this portion, it will continue to hold a 10.8% stake in Yes Bank. SMBC had earlier in the year reached an agreement to acquire a 20% stake in Yes Bank from a consortium of existing shareholders—including SBI and several private banks—for ₹13,483 crore, also valuing Yes Bank shares at ₹21.50 each. The consortium comprised banks including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank, which together are selling the remaining 6.81% stake in the larger deal for about ₹4,594 crore.
Regulatory approvals have been secured: SMBC received consent from the Reserve Bank of India (RBI) on August 22, 2025, and from the Competition Commission of India (CCI) on September 2, 2025. The SBI board’s Executive Committee of the Central Board had approved the divestment earlier—on 9 May 2025.
Market reaction has been positive. SBI shares rose by around 3% after the announcement, while Yes Bank shares showed marginal movement.
The deal is being viewed as a milestone in India’s banking sector, representing the largest cross-border investment in this space. SBI’s chairman, Challa Sreenivasulu Setty, lauded the transaction, referencing Yes Bank’s restructuring in 2020 under the RBI and the government, saying the partnership with SMBC will bring global expertise to fuel Yes Bank’s growth.
In summary, SBI has realised more than 3.6 times return on part of its original investment in Yes Bank made during the 2020 reconstruction scheme. The transaction underscores increasing foreign investor interest in India’s private banking sector and a trend of strategic restructuring among existing large shareholders.