SBI Finalizes Sale of 13.18% Share in Yes Bank, Holds on to 10.8% Ownership
In a landmark move for the Indian banking sector, Sumitomo Mitsui Banking Corporation (SMBC), a Japanese bank that is part of the Sumitomo Mitsui Financial Group (SMFG), has acquired around 13.18% stake in Yes Bank Limited (YBL). This transaction marks the largest cross-border investment in the Indian banking sector.
SMBC, one of Japan's biggest financial institutions and a leading foreign bank operating in India, brings its global expertise to Yes Bank. The acquisition is expected to complement Yes Bank's ongoing transformation and future growth, according to Setty, the Chairman of Yes Bank.
The deal was facilitated by SBI Capital Markets Limited, which acted as the financial advisor for the transaction. S&R Associates served as the legal advisor. The transaction received approvals from the Reserve Bank of India and the Competition Commission of India.
Yes Bank Limited, an Indian bank, became a focus of attention in March 2020 when SBI became the largest shareholder following the Central Government's announcement of the Yes Bank Limited Reconstruction Scheme. SBI continues to remain a shareholder in Yes Bank with an approximate 10.8% residual holding after the latest stake sale.
Setty described the deal as the largest cross-border transaction in Indian banking. He expressed pride in the journey shared with Yes Bank in supporting their transformation since SBI became the major shareholder in 2020. Setty also stated that the collaborative effort helped protect the interests of millions of Yes Bank customers.
The Chairman of Sumitomo Mitsui Financial Group during the final phase of the deal with State Bank of India regarding the shares of Yes Bank Limited could not be identified from the provided search results. However, SMFG, the parent company of SMBC, is the second-largest banking group in Japan with assets worth nearly $2 trillion.
Setty further described the Yes Bank restructuring plan in 2020 as an innovative, first-of-its-kind public-private sector partnership supported by the Government of India and the RBI. He welcomed SMBC as a strategic partner for Yes Bank and expressed optimism about the future growth and transformation of the bank under the new partnership.
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