SBI completes 13.18% sale in Yes Bank to Sumitomo Mitsui Banking Corp

The proceeds of the transaction would boost the bottomline of SBI in the second quarter ending September at a time when interest income and margins are under pressure

State Bank of India (SBI), the country’s largest lender, has completed divestment of about 13.18 per cent stake in private lender Yes Bank to Sumitomo Mitsui Banking Corporation (SMBC) for over ₹8,889 crore.

 

The proceeds of the transaction are set to boost SBI's bottom line of SBI in the second quarter ending September. This comes at a time when interest income and margins are under pressure due to policy rate cuts amid subdued credit offtake.

 

In May, SBI and seven private sector banks that had invested in Yes Bank during its reconstruction in March 2020, decided to sell 20 per cent stake for ₹13,482 crore to SMBC. This is the largest cross-border deal in the Indian banking sector.

 

SBI's board had approved to divest 4134.4 million shares of Yes Bank to SMBC. The approved price was ₹21.50 per equity share. After the divestment, SBI will hold a 10.8 per cent stake in Yes Bank.

 

SBI, in filing with BSE, said the transfer of shares has been completed on Wednesday.

 

C S Setty, chairman, SBI, in a statement, said, “Yes Bank restructuring plan by RBI in 2020 was an innovative, first-of-its- kind public sector – private sector partnership. We are excited to welcome SMBC, a marquee financial institution, as a strategic partner through the largest cross-border transaction in India’s banking sector. Their global expertise will be a great complement to Yes Bank’s ongoing progress and future ambitions.” 

 

SBI became the largest shareholder of the private sector lender in March 2020 under a Government of India-backed restructuring scheme for the then troubled Yes Bank.

 

Subsequently, SBI had also acquired additional shares as part of a follow-on public offer by Yes Bank in July 2020.

 

Analysts said the money from partial stake sale is expected to boost revenue from treasury operations, which is part of other income, in the September quarter (Q2FY26).

 

Net interest income (NII) had shrunk by 1.3 per cent year-on-year (Y-o-Y) to ₹41,072 crore in the first quarter ended June 2025 (Q1FY26).

 

 Net interest margins (NIM) in domestic operations had  moderated by 33 basis points (bps) to 3.02 per cent in the quarter ended June 2025.

 

Net profit grew Y-o-Y by 12.48 per cent to ₹19,160 crore in Q1FY26.

 

NII had risen by 5.31 per cent to ₹41,620 crore in Q2FY25 and NIMs in domestic operations had moderated by 16 bps to 3.27 per cent in the quarter ended September 2024 (Q2FY25).

 

Net profit Y-o-Y had grown by 27.92 per cent to ₹18,331 crore in Q2FY25.