SBI Offloads Yes Bank Stake, SMBC Secures Multi-Crore Deal in India

In a landmark transaction, the State Bank of India (SBI) has sold a large part of its holding in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC). The deal, valued at ₹8,889 crore, marks one of the biggest foreign investments in India’s private banking sector.

The transaction

SBI offloaded 413.44 crore shares, equivalent to a 13.18% stake in Yes Bank, at ₹21.50 per share. The deal, cleared by the Reserve Bank of India (RBI) and the Competition Commission of India (CCI), also gives SMBC the right to nominate two directors to Yes Bank’s board. SBI’s Central Board had approved the sale in May 2025, subject to regulatory conditions, which have now been met.

SMBC’s India push

With this acquisition, SMBC has emerged as a major player in India’s banking landscape. In total, SMBC is investing ₹13,483 crore for a 20% stake in Yes Bank. Of this, ₹8,889 crore came from SBI’s share sale, while the remaining ₹4,594 crore worth of shares were purchased from other private banks including HDFC, ICICI, Kotak Mahindra, Axis, IDFC First, Federal, and Bandhan.

Regulatory clearance for expansion

The RBI has permitted SMBC to raise its shareholding in Yes Bank up to 24.99%. According to reports, SMBC may either buy additional shares from private equity firms like Advent and Carlyle or subscribe to fresh preferential issues from Yes Bank to reach the cap.

This deal not only boosts Yes Bank’s global credibility but also signals SMBC’s aggressive long-term strategy for India’s rapidly growing financial sector.