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Japan’s SMBC Acquires 20% Stake in YES Bank in a Deal Worth Approximately ₹13,483 Crore.

Banking & Finance | Dated: 14 May 2025

In May 2025, Sumitomo Mitsui Banking Corporation (SMBC), a wholly-owned subsidiary of Japan’s second-largest banking group, Sumitomo Mitsui Financial Group, Inc. (SMFG), entered into a definitive agreement to acquire a 20% stake in YES Bank Limited, headquartered in Mumbai, Maharashtra. The deal is valued at approximately Rs 13,483 crore, making it the largest cross-border investment in India's banking sector.

🎯 Key Highlights:

  • - This landmark deal is expected to play a transformational role in YES Bank’s future, by strengthening its capital base and enabling its next phase of growth, profitability, and value creation. The transaction is subject to necessary regulatory and statutory approvals from bodies like the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
  • - As part of this transaction, State Bank of India (SBI) will divest its 13.19% stake in YES Bank, at a price of Rs 21.50 per share, amounting to a total of Rs 8,889 crore. Upon completion, SBI’s shareholding in the bank will reduce from 23.97% to just over 10%.
  • - In addition to SBI, seven private sector banks will collectively sell their 6.81% stake in YES Bank for Rs 4,594 crore. These banks include ICICI Bank, HDFC Bank, Kotak Mahindra Bank (KMBL), Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank.

💡 Other Important Facts:

  • (i) This group of private lenders had initially invested in YES Bank in March 2020, as part of a Reconstruction Scheme led by the RBI to revive the bank. Their stakes were part of a consortium bailout designed to stabilize YES Bank after a financial crisis.
  • (ii) As of March 31, 2025, the shareholding pattern of these private lenders in YES Bank was as follows: HDFC Bank (2.75%), ICICI Bank (2.39%), KMBL (1.21%), Axis Bank (1.01%), IDFC First Bank (0.92%), Federal Bank (0.76%), and Bandhan Bank (0.70%). Notably, Federal Bank and Bandhan Bank have announced plans to sell 0.5% stake each, which will reduce Bandhan Bank’s stake to just 0.21%.
  • (iii) For this strategic transaction, YES Bank was advised by Citigroup Global Markets Private Limited (Citi) as its financial advisor, and AZB & Partners (AZB) as its legal advisor, guiding the deal through valuation, structuring, and compliance.

📚 Test Your Knowledge:

Which Indian bank recently announced the sale of a 20% stake to Japan's SMBC for approximately ₹13,483 crore?

Correct Answer: YES Bank

🚀 Quick Recap:

About Yes Bank Limited

  • CEO & MD : Prashant Kumar
  • Headquarter : Mumbai