Mumbai, May 9 || India’s largest lender, State Bank of India (SBI), announced on Friday that it will sell a 13.19 per cent stake in private lender Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (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.