SBI divests 13.19% stake in Yes Bank to SMBC for Rs 8889 crores
The decision taken involves divesting 413,44,04,897 equity shares of Yes Bank at a price of Rs 21.50 per share, to Japanese multinational financial services company, Sumitomo Mitsui Banking Corporation (SMBC).
SMBC will buy the shares at a price of Rs 21.50 per share, the total consideration amount comes to nearly Rs.8888.97 crores.
This decision was approved by the Executive Committee of the Central Board (ECCB) of SBI in a meeting held on Friday, May 9, 2025.
The deal needs to be closed within 12 months from the date of the agreement which is May 9, 2025, or such other date as mutually agreed by SBI and SMBC.
SMBC had earlier sought approval of the Reserve Bank of India (RBI) to acquire 51 per cent stake in Yes Bank.
As of March 2025, SBI held a 23.97 per cent stake in Yes Bank. With this partial exit, SBI will nearly halve its holdings in Yes Bank while realizing substantial gains on its investments, nearly doubling its investment value on the shares sold.
In 2020, SBI invested Rs 6,050 crore to acquire a 49 per cent stake in Yes Bank as part of a rescue plan for the troubled lender. However, after private equity firms Carlyle and Advent invested in the bank last year, SBI's stake was reduced to 26.14 per cent.
It may be recalled that the Central Government has roped in the SBI to recapitalise Yes Bank, which was in the verge of collapse owing to mismanagement by its erstwhile promoter. Several other commercial banks and LIC hold little more than 11 per cent stake in Yes Bank.
Despite Indian stock market closed at over a per cent down, on this news Yes Bank share closed 9.82 per cent up on Friday at NSE closed at Rs 20.02 per share and 9.77 per cent up at BSE closed Rs 20 a share. (ANI)
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