Did SBI Successfully Divest 13.18% Stake in Yes Bank?
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Synopsis
In a significant move for the Indian banking sector, SBI has finalized the sale of a substantial 13.18% stake in Yes Bank to SMBC. This strategic divestment not only showcases SBI's ongoing commitment to Yes Bank's transformation but also marks a pivotal moment in cross-border investments in India.
Key Takeaways
- SBI divested 13.18% of its stake in Yes Bank.
- SMBC is a major player in the deal.
- SBI retains 10.8% ownership in Yes Bank.
- The transaction highlights cross-border investment in Indian banking.
- All necessary regulatory approvals were secured.
Mumbai, Sep 17 (NationPress) State Bank of India (SBI), recognized as the largest financial institution in the country, declared on Wednesday the successful completion of the divestment of approximately 13.18 percent of its stake in Yes Bank Limited (YBL) to Sumitomo Mitsui Banking Corporation (SMBC).
SMBC, a prominent member of the Sumitomo Mitsui Financial Group (SMFG), stands as one of Japan's foremost financial entities and a key foreign bank operating within India.
With assets nearing $2 trillion, SMFG ranks as the second-largest banking consortium in Japan.
SBI emerged as the principal stakeholder in Yes Bank back in March 2020, following the announcement of the Yes Bank Limited Reconstruction Scheme by the Central Government.
Subsequently, the bank acquired more shares via the lender's follow-on public offering in July 2020.
Post this recent stake divestment, SBI maintains a residual shareholding of approximately 10.8 percent in Yes Bank.
This divestment, alongside share sales from other banking shareholders, signifies the largest cross-border investment within the Indian banking landscape.
All requisite approvals for the deal were secured, including endorsements from the Reserve Bank of India and the Competition Commission of India.
SBI Chairman Challa Sreenivasulu Setty emphasized that the restructuring initiative for Yes Bank in 2020 exemplifies a distinctive model of public-private sector collaboration, bolstered by the Government of India and the RBI.
He noted that this joint effort safeguarded the interests of millions of Yes Bank customers.
“The Yes Bank restructuring initiative by the RBI in 2020 stands as an innovative, unparalleled public-private partnership, fully endorsed and facilitated by the Government,” he highlighted.
“We take immense pride in the journey shared with Yes Bank, supporting their transformation since we assumed the role of major stakeholder in 2020,” he remarked.
Setty also welcomed SMBC as a strategic ally, characterizing the deal as the most significant cross-border transaction in Indian banking.
He added that SMBC’s global expertise will enhance Yes Bank’s ongoing transition and future development.
SBI Capital Markets Limited served as the financial advisor for this transaction, while S&R Associates acted as the legal advisor.
Point of View
The recent divestment by SBI represents a strategic maneuver in the evolving landscape of Indian banking. The partnership with SMBC is poised to enhance Yes Bank's growth trajectory, fostering a robust public-private collaboration that aligns with national interests.
NationPress
20/09/2025
Frequently Asked Questions
What percentage of Yes Bank did SBI sell?
SBI completed the sale of approximately 13.18% of its stake in Yes Bank.
Who is the buyer of SBI's stake in Yes Bank?
The buyer is Sumitomo Mitsui Banking Corporation (SMBC).
What is SBI's remaining stake in Yes Bank after the divestment?
SBI retains approximately 10.8% of its shareholding in Yes Bank.
What approvals were required for the transaction?
The deal received necessary approvals from the Reserve Bank of India and the Competition Commission of India.
What does this divestment signify for the Indian banking sector?
It marks the largest cross-border investment in the Indian banking industry.
