Yes Bank Shares Surge 8% as SBI and Partners Divest Stake to SMBC

In a significant move in the Indian banking sector, Yes Bank's shares experienced a boost of over 8% on Monday following the announcement that State Bank of India (SBI), along with seven other financial institutions, would divest 20% of their combined stakes. The purchaser, Sumitomo Mitsui Banking Corporation (SMBC) of Japan, will pay a sum of Rs 13,483 crore for the acquisition.

The stock's value rose to Rs 21.74 on the BSE, registering an 8.7% increase, while at the NSE, it advanced by 8.39% to hit Rs 21.70. Consequently, Yes Bank's market valuation escalated by Rs 1,415.15 crore, reaching Rs 64,123.38 crore.

Post-transaction, SMBC is set to become the leading shareholder in Yes Bank. The deal involves SBI offloading a 13.19% stake for Rs 8,889 crore, whereas the remaining 6.81% will be sold by Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank collectively for Rs 4,594 crore. This decision follows investments made during the March 2020 YES Bank Reconstruction Scheme.

(With inputs from agencies.)