SBI sells stake in Yes Bank to Sumitomo corporation

State Bank of India (SBI) and seven other lenders on Friday announced selling 20 per cent of their combined stakes in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC) for a consideration of Rs 13,483 crore, making it the largest cross-border investment in the Indian banking sector.

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Following completion of the transaction, SMBC will become the single largest shareholder of Mumbai-based Yes Bank. Of the 20 per cent stake, SBI would dilute 13.19 per cent stake in Yes Bank in favour of SMBC for a consideration of Rs 8,889 crore, while 6.81 per cent shareholding will be offloaded by seven other lenders -- Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank -- for about Rs 4,594 crore. SBI and the seven investor lenders had invested in the bank as part of the YES Bank Reconstruction Scheme in March 2020. The share sale is proposed to take place at a price of Rs 21.50 per equity share, it said.