Japan's SMBC to acquire 20% stake in Yes Bank

Sumitomo Mitsui Banking Corporation (SMBC) has entered into a definitive agreement on 9 May 2025 to acquire 20% stake in Yes Bank through a secondary stake purchase of 13.19% from SBI and 6.81% aggregate stake from other bank shareholders (Investor Banks) including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank. This transaction is the largest cross-border investment in the Indian banking sector.

SBI and the seven investor banks had invested in Yes Bank as part of its reconstruction scheme in March 2020.

SBI's Executive Committee of the Central Board (ECCB) approved the deal involving the transfer of 413.44 crore equity shares (13.19% equity) at a price of Rs 21.50 per share, raking in a hefty Rs 8,888.97 crore for the PSU banking giant.

The transaction is expected to be wrapped up within 12 months, subject to the usual regulatory and statutory clearances.

SMBC, a premier Japanese multinational financial services firm and a part of the Sumitomo Mitsui Financial Group (SMFG), is the acquirer in this transaction.

As on March 2025, SBI is the largest shareholder in Yes Bank, holding 23.97%, followed by smaller stakes from HDFC (2.75%), ICICI (2.39%), Kotak Mahindra (1.21%), Axis (1.01%), IDFC First (0.92%), Federal (0.76%), and Bandhan (0.70%). Following the deal, SBI's stake in Yes Bank will drop to 10.78%.

Shares of Yes Bank surged 9.77% to settle at Rs 20.