As of today, May 9, 2025, the boards of State Bank of India (SBI) and Yes Bank are convening to finalize a significant stake sale to Japan’s Sumitomo Mitsui Banking Corporation (SMBC). The proposed deal involves SMBC acquiring an initial 20% stake in Yes Bank through a secondary share sale from SBI and other institutional investors. This acquisition is part of a phased plan that could eventually see SMBC increasing its stake to a majority holding, potentially up to 51%, subject to regulatory approvals.

SBI, which currently holds approximately 24% of Yes Bank, is expected to retain a 10% stake post-transaction. The deal may also see SMBC securing two board seats, while SBI maintains one. The initial purchase price is anticipated to be around ₹20 per share, slightly above Yes Bank’s closing price of ₹18.22 on Thursday.

However, it’s important to note that Yes Bank has officially dismissed these reports as speculative. In a statement to the stock exchanges, the bank clarified that while it regularly explores strategic opportunities, the discussions referenced in media reports are preliminary and do not warrant disclosure at this stage.

If the deal proceeds as reported, it would represent one of the largest foreign-led mergers and acquisitions in India’s banking sector. A formal announcement is expected following the conclusion of today’s board meetings.

Sources