Major Stake Shift: Yes Bank's Dynamic Turnaround with SMBC Investment

The State Bank of India and seven other lenders plan to sell a 20% stake in Yes Bank to Japan's SMBC for Rs 13,483 crore. This makes SMBC the largest shareholder and marks the biggest cross-border investment in India's banking sector, aiming to propel Yes Bank's growth and profitability.

The State Bank of India (SBI) along with seven other lenders, have announced the sale of a 20% stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation (SMBC). This Rs 13,483 crore deal marks a significant cross-border investment in India's banking sector, making SMBC the leading shareholder of the Mumbai-based bank.

In detail, SBI is set to dilute its 13.19% stake for Rs 8,889 crore, while seven other financial institutions, including HDFC and ICICI, will divest the remaining 6.81% for Rs 4,594 crore. The move follows the 2020 Yes Bank Reconstruction Scheme investment, aiming to bolster Yes Bank's future growth.

The deal, pending regulatory approvals, could redefine Yes Bank's ownership and strategy. CEO Prashant Kumar highlights SMBC's global expertise as a catalyst for the bank's next growth phase, lauding it as support for the bank's transformative journey. Yes Bank recently reported a 63% profit jump, signaling recovery and optimism for future prospects.