SBI shares jump over 3% as lender completes divestment of 13.18% stake in Yes Bank to SMBC

The transaction involved the sale of 413.44 crore equity shares of Yes Bank at ₹21.50 per share. SBI stated that the sale was executed after SMBC obtained the necessary approvals from the Reserve Bank of India (RBI) and from the Competition Commission of India (CCI).

Japan’s largest bank struck a ₹13,483-crore ($1.6 billion) deal to acquire a 20% stake in Yes Bank, marking its entry into the Indian banking sector.

SMBC had received the Reserve Bank of India’s (RBI) approval on August 22, 2025, to acquire up to 24.99% of the paid-up share capital of the bank.

On September 3, the Competition Commission of India (CCI) had cleared Japan's Sumitomo Mitsui Banking Corporation's (SMBC) proposal to acquire up to a 24.99% stake in the private sector lender.

"The proposed combination relates to the acquisition of share capital and voting rights of Yes Bank by Sumitomo Mitsui Banking Corporation (SMBC)," the Competition Commission of India (CCI) had said in a release.

The development follows the May 9, 2025, disclosure of Yes Bank about the SMBC's proposed acquisition of a 20% holding in the lender through a secondary stake purchase of a 13.19% stake from the State Bank of India and a 6.81% share from seven other shareholders.

Other shareholders are Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank.

After the transaction, SMBC becomes the single-largest shareholder of Mumbai-based Yes Bank.

SBI and the seven investor lenders had invested in the bank as part of the Yes Bank reconstruction scheme in March 2020. The state-owned lender currently holds a 24% stake in Yes Bank and will be left with a little over a 10% stake after the dilution.

SMBC is a wholly owned subsidiary of Sumitomo Mitsui Financial Group, Inc. (SMFG). It is among the leading foreign banks in India, and SMFG's wholly owned subsidiary, SMFG India Credit Company, is among the largest diversified NBFCs in India.

At 2:38 PM, State Bank of India shares were trading at ₹856.70 apiece on the National Stock Exchange, gaining 3.2%. In the last five trading sessions, the stock has climbed 3.5%. For six months’ time, SBI shares have soared 18%. Year-to-date, it has advanced over 7.5%.

The country’s largest bank’s market capitalisation stands at ₹7.87 lakh crore.

Yes Bank shares, however, were trading 0.05% down at ₹21.02 apiece on NSE.