State Bank of India (SBI), the country’s largest public sector lender, officially announced on Wednesday (September 17, 2025) the completion of its divestment of approximately 13.18% of its shareholding in Yes Bank. The stake was sold to Sumitomo Mitsui Banking Corporation (SMBC) of Japan, fetching ₹8,888.97 crore for SBI.
SMBC, a prominent Japanese multinational financial services company and part of the Sumitomo Mitsui Financial Group (SMFG), has now injected significant capital into the Indian banking landscape. SMFG itself stands as Japan’s second-largest banking group, boasting total assets of approximately $2 trillion, and is already a leading foreign bank presence in India.
SBI initially became the largest shareholder in Yes Bank in March 2020, following the central government’s Reconstruction Scheme 2020, which aimed to stabilize the struggling private sector bank. Subsequently, SBI further increased its holdings by acquiring additional shares during a follow-on public offer by Yes Bank in July 2020.
Even after this major divestment, SBI will retain a substantial 10.8% ownership in Yes Bank, continuing its role as a key stakeholder. This partial sale by SBI, alongside other shareholder banks, to SMBC, is notably recognized as the largest cross-border investment ever recorded in the Indian banking sector.
The entire transaction successfully navigated the required regulatory and statutory approval processes, securing clearances from both the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
C.S. Setty, Chairman of SBI, expressed pride in the achievement, stating, "The Yes Bank restructuring plan initiated by the RBI in 2020 was an innovative and unprecedented public-private partnership, fully supported and facilitated by the Government of India. We are incredibly proud of our journey with Yes Bank, supporting their transformation since becoming the major shareholder in 2020."
He further elaborated on the collaborative effort: "This stands as perhaps the finest example of protecting the interests of a large bank’s customers through the concerted efforts of SBI and other banks, all under the expert guidance of the government and RBI."
Welcoming the new strategic partner, Setty added, "We are thrilled to welcome SMBC, a distinguished financial institution, as a strategic partner through what is India’s largest cross-border banking transaction. Their global expertise will undoubtedly enhance Yes Bank’s ongoing progress and future ambitions."
SBI Capital Markets Limited served as the financial advisor to SBI and the other selling shareholder banks throughout this significant deal.