new delhi: The State Bank of India (SBI) and Bandhan Bank Limited on Wednesday announced the divestment of their stakes in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC), marking the largest cross-border investment in India’s banking sector.
SBI said it completed the sale of about 13.18 per cent stake to SMBC for Rs 8,888.97 crore. With this transaction, SBI’s shareholding in Yes Bank has come down to 10.8 per cent. The bank had emerged as the largest shareholder of Yes Bank in March 2020 under the Reconstruction Scheme framed by the Reserve Bank of India and the government.
Bandhan Bank also informed the exchanges that it sold 15.39 crore equity shares of Yes Bank at Rs 21.50 per share to SMBC on September 17, 2025, reducing its stake from 0.70 per cent to 0.21 per cent.
SMBC, part of the Sumitomo Mitsui Financial Group (SMFG), is Japan’s second-largest banking group with total assets of about USD 2 trillion and is among the leading foreign banks operating in India. The transaction has received approvals from the Reserve Bank of India and the Competition Commission of India.
SBI Chairman C.S. Setty described the development as a milestone. “Yes Bank restructuring plan by the RBI in 2020 was an innovative, first-of-its-kind public-private partnership. We are proud of our journey with Yes Bank and excited to welcome SMBC as a strategic partner. Their global expertise will complement Yes Bank’s future ambitions,” he said.
SBI Capital Markets Limited acted as the financial advisor to SBI and other selling shareholder banks for the
transaction.