State Bank of India (SBI) has approved the sale of 413,440,489 equity shares of YES Bank Limited, representing 13.19 per cent of the bank's shareholding, to Japan-based Sumitomo Mitsui Banking Corporation (SMBC). Valued at approximately Rs 88.89 billion, the transaction is expected to be completed within twelve months, subject to regulatory and statutory approvals.

This divestment, approved by the Executive Committee of the Central Board on May nine, 2025, will reduce SBI’s stake in YES Bank from 24 per cent to 10.81 per cent. Other Indian financial institutions such as Kotak Mahindra Bank, Axis Bank, ICICI Bank, and Life Insurance Corporation of India hold a combined 11.34 per cent stake. Additionally, private equity firms Advent International and Carlyle Group own 9.2 per cent and 6.84 per cent, respectively.

Following the announcement, YES Bank shares surged 11.74 per cent to an intraday high of Rs 20.36, before closing 9.77 per cent higher at Rs 20. SBI shares ended 1.39 per cent up at Rs 779.40, reflecting a positive market reaction to the deal.

Source: Business Today