SYNOPSIS:
SBI, Federal Bank, and Bandhan Bank sold YES Bank shares worth over Rs. 9,577 crore to Japan’s SMBC, which acquired a 20 percent stake with potential plans to raise holding despite RBI’s voting cap.
On 9th May 2025, Japan’s Sumitomo Mitsui Banking Corporation (SMBC), one of the world’s largest banking groups, signed a definitive agreement to acquire a 20 percent stake in YES Bank through a secondary purchase. The transaction involves buying 13.19 percent from State Bank of India (SBI) and 6.81 percent collectively from other shareholders, including Axis Bank, HDFC Bank, IDFC First Bank, Kotak Mahindra Bank, and others.
These banks, along with SBI, had originally invested in YES Bank under the Reconstruction Scheme of March 2020. With this move, SMBC has also indicated the possibility of eventually raising its holding to a majority stake of up to 51 percent.
However, the Reserve Bank of India (RBI) is expected to cap SMBC’s voting rights at 26 percent, meaning that while the Japanese lender could own a majority of shares, it may not enjoy full control over the bank.
The following three banks divested their YES Bank shares to SMBC for a combined consideration of over Rs. 9,577 crore:
Federal Bank
With a market cap of Rs. 49,176 crores, the stock moved up by around 1 percent on BSE, rising to Rs. 200.4 on Thursday. As per the latest exchange filings, Federal Bank on 17th September 2025, sold nearly 16.62 crores equity shares of YES Bank with a face value of Rs. 2 each to SMBC under a previously signed agreement. The shares were sold at a consideration of Rs. 21.5 per share, amounting to a total consideration of Rs. 357.5 crores.
Bandhan Bank
With a market cap of Rs. 27,121 crores, the stock moved up by around 3 percent on BSE, rising to Rs. 168.85 on Thursday. Bandhan Bank disclosed that it sold around 15.39 crore shares at Rs. 21.5 apiece, for a total value of around Rs. 331 crores. This divestment reduced the bank’s shareholding in YES Bank Limited from 0.70 percent to 0.21 percent.
State Bank of India
With a market cap of Rs. 7.91 lakh crores, the stock moved up by around 0.5 percent on BSE, rising to Rs. 860.9 on Thursday. The country’s largest lender was the biggest seller in the deal, offloading nearly 413.44 crores equity shares of Yes Bank Limited, equivalent to a 13.19 percent stake, to Sumitomo Mitsui Banking Corporation (SMBC). The shares were sold at Rs. 21.5 per equity share, valuing the transaction at around Rs. 8,889 crores.
Written by Shivani Singh
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