State Bank of India (SBI) on Friday announced that it has decided to sell 13.19 per cent stake in Yes Bank to Sumitomo Mitsui Banking Corporation (SMBC) worth Rs 8,889 crore at Rs 21.50 per equity share.
In a regulatory filing today, SBI said, “…we advise that the Executive Committee of the Central Board (ECCB) of the Bank in the meeting held on 9th May, 2025 has accorded approval to divest 413,44,04,897 equity shares of Yes Bank Limited (YBL), being equivalent to 13.19% (approx.) of YBL shares to Sumitomo Mitsui Banking Corporation (SMBC), at Rs 21.50 per equity share, for a consideration of Rs 8888,97,05,285 and paisa 50 only (Rs.8888.97 crores approx.).”
The discussions for the sale had, per a Moneycontrol report, begun in 2024. It is worth noting here that this transaction is the largest cross-border investment in India’s banking sector. SBI held a 23.97 per cent stake in Yes Bank as of March 2025.
In another exchange filing, Federal Bank announced that it has received approval from the board of directors to sell 0.5 per cent stake in Yes Bank to Sumitomo Mitsui Banking Corporation for Rs 357 crore at Rs 21.50 per share. “We wish to inform you that, in accordance with the approval provided by our Board of Directors, the Bank has today, i.e. on May 09, 2025, executed a Letter Agreement with Sumitomo Mitsui Banking Corporation, a banking corporation headquartered in Japan (SMBC) and Yes Bank Limited (Company) for sale of 16,62,73,472 equity shares of face value of Rs 2.00 each of the Company held by the Bank, in favour of SMBC, at a consideration of Rs 21.50 per share subject to applicable law,” it said.
Earlier on May 3, SBI had released its fiscal fourth quarter earnings report with a 10 per cent drop in net profit on the back of narrower net interest margin growth. Q4 net profit came in at Rs 18,643 crore. The bank’s net interest income, or the difference between interest earned on loans and paid on deposits, increased 2.7 per cent to Rs 42,775 crore vs Rs 41,655 crore in Q4FY24.