YES Bank Gets a New Major Investor: SBI, HDFC Bank, and Others Sell Stakes to SMBC
India’s largest lender, the State Bank of India (SBI), along with seven other major banks, including HDFC Bank, Kotak Mahindra Bank, ICICI Bank, and Axis Bank, are selling a combined 20% stake in YES Bank to Sumitomo Mitsui Banking Corporation (SMBC), a Japanese financial giant. This news comes after YES Bank made an official announcement on Friday, May 9th.
SBI’s Significant Divestment
SBI itself is divesting a 13.19% stake in YES Bank to SMBC for a hefty ₹8,889 crore. This involves selling 4,13,44,04,897 equity shares at a price of ₹21.50 per share. The bank confirmed this move in a filing to the stock exchanges, stating that their Executive Committee of the Central Board (ECCB) approved the deal in a meeting held on May 9th, 2025.
Following this transaction, SBI’s stake in YES Bank will decrease from 23.97% to 10.78%. The deal is subject to regulatory and statutory approvals from the acquirer, SMBC, and is expected to be completed within 12 months.
A Collective Effort to Restructure YES Bank
This stake sale isn’t an isolated event. Remember back in 2020, when YES Bank was facing financial troubles? It was during that time that these banks, including ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank, and Life Insurance Corporation of India, collectively acquired a 11.34% stake in YES Bank as part of the Reserve Bank of India’s (RBI) bailout plan. This ₹10,000 crore infusion was aimed at stabilizing the bank and facilitating its restructuring.
SMBC’s Ambitions for YES Bank
In a recent development, Mint was the first to report that SMBC had received the RBI’s approval to acquire up to 51% in YES Bank. They have two potential paths forward: either acquire less than 26% and merge through a share swap, or acquire up to 26% and launch an open offer.
Sumitomo Mitsui Banking Corporation is a renowned financial services company belonging to the Sumitomo Mitsui Financial Group. It boasts a substantial market capitalization of nearly ₹7.601 lakh crore.
YES Bank’s shares saw a notable surge, closing nearly 10% higher at ₹20 apiece on the BSE ahead of the announcement.
