Sumitomo Mitsui to Become Largest Shareholder in Yes Bank with ₹13,483 Cr Investment
In a landmark deal poised to reshape India’s private banking landscape, seven Indian banks—led by the State Bank of India (SBI)—are preparing to divest a significant portion of their stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC). The transaction, valued at ₹13,483 crore, will make SMBC the largest shareholder in Yes Bank and mark the single largest foreign investment in India’s banking sector to date.
SBI, which currently holds a 24% stake in Yes Bank, will sell 13.19% of its shares for ₹8,888.97 crore. Following the sale, SBI will retain a minority holding of 10%. This strategic exit is part of a broader disinvestment by a consortium of banks that rescued Yes Bank in 2020 after a major financial crisis.
In addition to SBI, other participating banks include HDFC Bank (2.75%), ICICI Bank (2.39%), Kotak Mahindra Bank (1.21%), Axis Bank (1.01%), IDFC First Bank (0.92%), Federal Bank (0.76%), and Bandhan Bank (0.70%). Collectively, these banks will sell an additional 6.81% stake for ₹4,594 crore.
According to regulatory filings, SBI will offload its shares at ₹21.50 each. The deal is subject to approvals from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
Prashant Kumar, MD & CEO of Yes Bank, welcomed the potential partnership, stating that the proposed acquisition would offer Yes Bank an opportunity to accelerate growth and enhance operational standards. “We look forward to benefiting from SMBC’s global expertise and governance excellence,” Kumar said.
Sumitomo Mitsui Financial Group (SMFG), the parent company of SMBC, is Japan’s second-largest banking group. It already operates in India through SMFG India Credit Company Limited, and this new move further solidifies its commitment to expanding within the Indian financial ecosystem.
