Yes Bank's Major Stake Sale to Japan's SMBC Sparks Market Gains
Yes Bank's shares saw a 2% rise after SBI and other lenders sold a 20% stake to Japan's Sumitomo Mitsui Banking Corporation for Rs 13,483 crore. This significant cross-border investment makes SMBC the largest stakeholder. The sale includes SBI reducing its stake by 13.19% for Rs 8,889 crore.
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Shares of Yes Bank jumped by over 2% on Monday, following the announcement that State Bank of India and seven other lenders are selling a 20% stake to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for Rs 13,483 crore.
The transaction marked the largest cross-border investment in India's banking sector, positioning SMBC as Yes Bank's largest shareholder. SBI plans to reduce its stake by 13.19%, amounting to Rs 8,889 crore, while 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 for Rs 4,594 crore.
SBI and other investor banks took their positions in Yes Bank under the YES Bank Reconstruction Scheme in March 2020. The executive committee of SBI confirmed the approval to offload shares in a regulatory filing.
(With inputs from agencies.)
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