SBI completes 13.18% Yes Bank stake sale to Japan's SMBC for ₹8,889 crore

The amount has been received from the Japanese financial services company, according to an exchange filing on Wednesday. The transaction was approved by both Reserve Bank of India and the Competition Commission of India. SBI, even after the Yes Bank stake sale, will continue to have a shareholding of 10.8% in the private lender.

It was in March 2020, when SBI picked picked up a 49% stake in Yes Bank for ₹7,250 crore as part of the RBI's restructuring plan for the then debt-laden private bank. In July 2020, Yes Bank launched a follow-on public offer, wherein SBI picked up more shares of the company.

“Yes Bank's restructuring plan by the RBI in 2020 was an innovative, first-of-its-kind, public sector-private sector partnership that was fully supported and facilitated by the Government of India,” SBI Chairman CS Setty said in the exchange filing. “We are incredibly proud of the journey we have shared with Yes Bank in supporting their transformation, since we came on board as the major shareholder in 2020.”

“We are excited to welcome SMBC…as a strategic partner (in Yes Bank). Their global expertise will be a great complement to Yes Bank’s ongoing progress and future ambitions.”

SBI's stake sale in Yes Bank, as well as those by others, to Japan's Sumitomo Mitsui Banking Corp. is the largest cross-border investment in India's banking sector. Sumitomo Mitsui Financial Group is the second largest banking entity in Japan with total assets of $2 trillion.

SBI and the other selling shareholder banks were advised by SBI Capital Markets Ltd. as their financial advisor.

On Wednesday, SBI shares rose 3.02% to ₹856.95 apiece on the BSE even as the benchmark Sensex ended the day 0.38% higher at 82,693.71 points.