Published: 16 September 2025Business StandardEconomy
SBI Completes ₹8,889 Crore Stake Sale in Yes Bank to Japan's SMBC
State Bank of India completed the divestment of a 13.18% stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,889 crore on September 17, 2025. SMBC acquired a total 20% stake from SBI (13.19%) and seven other banks including HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank (6.81%), at ₹21.50 per share for a combined ₹13,483 crore.
The deal, the largest cross-border M&A in India's financial sector, received RBI clearance on August 22 and CCI approval on September 2, 2025. The proceeds are tax-free for the selling banks. This marks SMBC's strategic entry into the Indian banking market, transforming Yes Bank's ownership structure five years after its rescue by an SBI-led consortium in 2020.
0Mains angle
Q: Discuss the significance of the SBI-led ₹13,483 crore stake divestment in Yes Bank to Japan's SMBC for India's banking sector foreign investment landscape.
Answer (50 words):
On September 17, 2025, SBI sold 13.18% Yes Bank stake to Japan's SMBC for ₹8,889 crore. Combined with 6.81% from seven banks including HDFC, ICICI, Axis, Kotak Mahindra, SMBC acquired 20% at ₹21.50 per share, totalling ₹13,483 crore. RBI cleared August 22 — India's largest cross-border financial M&A.
6-axis classification
CoverageInternationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourceBusiness Standard
Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Linked questionMedium
JERA, which signed an LNG export deal with India's Torrent Power, is from which country?
Explanation · Correct answer DJERA, Japan's largest power generation company, signed its first long-term LNG export deal with India's Torrent Power for 0.27 MMTPA over 10 years.
Frequently asked questions
What is SBI's stake sale in Yes Bank to Japan's SMBC?
**SBI completed divestment of 13.18% stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,889 crore on September 17, 2025**. SBI completed an ₹8,889 crore stake sale in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC).
Why did SBI sell its Yes Bank stake to Japan's SMBC?
**SMBC acquired total 20% stake from SBI (13.19%) and seven other banks including HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank (6.81%) at ₹21.50 pe**. SBI rescued Yes Bank in 2020 and the stake sale marks the completion of the bank's financial reconstruction phase.
What is SMBC and why is its investment in Yes Bank significant?
**SMBC (Sumitomo Mitsui Banking Corporation) is Japan's second-largest bank**. Its Yes Bank investment signals confidence in India's banking recovery. **Largest cross-border M&A in India's financial sector; received RBI clearance on August 22 and CCI ap**
What happened to Yes Bank in 2020 and how was it rescued?
**Yes Bank collapsed in March 2020 due to bad loans** and was rescued by the SBI-led consortium under the RBI's reconstruction scheme. **Marks SMBC's strategic entry into Indian banking market, transforming Yes Bank's ownership five year**
What is the value of SBI's stake sold to SMBC in Yes Bank?
**SBI sold its Yes Bank stake for ₹8,889 crore** to Japan's SMBC. **State Bank of India completed the divestment of a 13.18% stake in Yes Bank to Japan's Sumitomo Mitsu**
