Historic Cross-Border Investment: SBI's Strategic Stake Sale in Yes Bank

State Bank of India (SBI), the country's largest lender, announced on Wednesday the successful divestment of approximately 13.18% of its stake in Yes Bank. The substantial stake has been acquired by Sumitomo Mitsui Banking Corporation (SMBC) from Japan, for an impressive sum of Rs 8,888.97 crore.

The transaction marks a pivotal moment as it becomes the largest cross-border investment in India's banking sector. SMBC, belonging to the Sumitomo Mitsui Financial Group, is known for being among the foremost foreign banks operating in India and is the second-largest banking group in Japan, boasting total assets of around USD 2 trillion.

Following the sale, SBI continues to be a shareholder in Yes Bank, with a remaining holding of 10.8%. The deal, approved by the Reserve Bank of India and the Competition Commission of India, is a testament to the collaborative approach taken by public and private sectors to safeguard the interests of Yes Bank customers. This historic partnership is expected to further invigorate Yes Bank's strategic vision with SMBC's global expertise.

(With inputs from agencies.)