SBI Completes ₹8,889 Crore Sale of 13.18% Stake in Yes Bank to Sumitomo Mitsui

The State Bank of India (SBI) has finalised the sale of a significant portion of its holding in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC). This move follows necessary approvals from regulators and paves the way for SMBC’s growing presence in the Indian financial sector.

SBI Divested Stake in Yes Bank

SBI divested a 13.18% stake in Yes Bank Limited, amounting to 413.44 crore equity shares, at ₹21.50 per share. The total consideration for the transaction stood at ₹8,889 crore. This follows approval from the Reserve Bank of India on August 22, 2025 and the Competition Commission of India on September 2, 2025.

Approval And Execution

The deal was executed after SBI’s Executive Committee of the Central Board had given clearance in May 2025. With all conditions precedent fulfilled, the transfer of shares has now been completed successfully.

SBI and Yes Bank’s Share Price Performance

On September 17, 2025,  as of 1.38 PM, SBI’s share price traded at ₹847 apiece on the NSE, up 1.82%. In contrast, Yes Bank’s share price was down by 0.24%, trading at ₹20.94 apiece.

Sumitomo Mitsui’s Entry Into Indian Banking

Japan’s largest bank, SMBC, had earlier committed ₹13,483 crore (about $1.6 billion) to acquire a 20% stake in Yes Bank, marking a key step into India’s financial sector. SMBC, a wholly owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), also received approval to appoint two nominee directors to the board of Yes Bank.

Private Banks: HDFC Bank, ICICI Bank, Kotak Mahindra Bank

Alongside SBI, 7 private sector banks, including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank and Bandhan Bank agreed to jointly sell 20% stake in Yes Bank at ₹21.50 per share. These banks had originally subscribed to the shares at ₹10 each in 2020.

Read More: Piramal Enterprises Share Price Jumps 4% as NCLT Approves Merger with Piramal Finance! 

Conclusion

Under this agreement, SBI offloaded 13.18%* of its 24% holding for ₹8,889 crore, while the seven private banks will divest a combined stake for ₹4,594 crore. This aligns with the broader restructuring and strategic investment plan involving Yes Bank.

Note: *Based on reported non-diluted shareholding as at June 30, 2025 

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