SBI to sell 13.19 pc stake in Yes Bank to Japan's SMBC for Rs 8,889 crore

The move is part of a strategic shift as SBI trims its holding in Yes Bank, which it had acquired during the latter’s financial crisis in 2020. SBI will offload over 413 crore shares of Yes Bank at Rs 21.50 per share.

“Pursuant to Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we advise that the Executive Committee of the Central Board (ECCB) of the Bank, in the meeting held on May 9, has accorded approval to divest 4,13,44,04,897 equity shares of Yes Bank Limited (YBL), being equivalent to approximately 13.19 per cent of YBL’s shares, to Sumitomo Mitsui Banking Corporation (SMBC) at Rs 21.50 per equity share," SBI said in its stock exchange filing.

The transaction is subject to regulatory approvals from bodies such as the Reserve Bank of India (RBI) and the Competition Commission of India (CCI), and is expected to be completed within a year.

SBI currently holds a 23.97 per cent stake in Yes Bank as of March 2024. After the deal with SMBC goes through, its stake will reduce to 10.78 per cent.

The bank disclosed the development in a stock exchange filing, stating that its executive committee approved the sale in a meeting held on May 9.

Federal Bank also announced a separate deal to sell a 0.5 per cent stake in Yes Bank at the same price of Rs 21.50 per share, amounting to a total value of Rs 357.5 crore.

Shares of Yes Bank reacted positively to the news, ending 10 per cent higher on Friday at Rs 20.05.

Meanwhile, earlier this week, media reports suggested that SMBC had received RBI’s approval to acquire up to 51 per cent stake in Yes Bank.

The reports said SMBC could either opt for a direct purchase of up to 26 per cent or pursue a share swap through a merger.

Yes Bank responded to these reports by saying that while it is on a growth trajectory and routinely explores options with various stakeholders, the talks with SMBC were still at a preliminary stage.