Shares of State Bank of India (SBI) rose 1.5% on September 17 after the PSU lender completed the sale of a 13.18% stake in Yes Bank to Japanese banking giant Sumitomo Mitsui Banking Corporation (SMBC) for nearly ₹8,889 crore.
SBI shares were trading around ₹843 apiece, marking gains for the third consecutive session. In contrast, Yes Bank shares saw marginal losses, trading near ₹20.94 per share, News.Az reports, citing foreign media.
Earlier this May, SMBC agreed to acquire a 20% stake in Yes Bank, one of the largest foreign investments in an Indian private bank. Under the deal, SMBC purchased over 13% stake from SBI and the remaining ~7% from a consortium of Indian banks, including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank. These banks had invested in Yes Bank at around ₹10 per share during its 2020 reconstruction.
SBI Chairman Challa Sreenivasulu Setty highlighted the significance of the transaction, saying:
"Yes Bank’s restructuring in 2020 was an innovative partnership between public and private sectors, fully supported by the Government of India. We are proud to have supported Yes Bank’s transformation as the major shareholder. This is a prime example of protecting customer interests through collaborative efforts guided by the RBI."
He added that SMBC’s global expertise will complement Yes Bank’s growth and future ambitions, marking the largest cross-border transaction in India’s banking sector.
