{"id":8371,"date":"2025-05-09T17:49:52","date_gmt":"2025-05-09T12:19:52","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=8371"},"modified":"2025-05-09T17:50:42","modified_gmt":"2025-05-09T12:20:42","slug":"japans-smbc-to-acquire-20-stake-in-yes-bank-for-%e2%82%b913483-crore-in-major-cross-border-deal","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/japans-smbc-to-acquire-20-stake-in-yes-bank-for-%e2%82%b913483-crore-in-major-cross-border-deal\/","title":{"rendered":"Japan’s SMBC to Acquire 20% Stake in Yes Bank for \u20b913,483 Crore in Major Cross-Border Deal"},"content":{"rendered":"
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In a landmark move for the Indian banking industry, Japan\u2019s Sumitomo Mitsui Banking Corporation (SMBC) has signed a definitive agreement to acquire a 20% stake in Yes Bank for \u20b913,483 crore through a secondary transaction.<\/p>\n

SBI to Sell 13.19% Stake, Other Banks to Offload 6.81%<\/h2>\n

As part of the deal announced on May 9, 2025, the State Bank of India (SBI) will sell 13.19% of its stake in Yes Bank for a total of \u20b98,889 crore. Meanwhile, seven other banks\u2014including Axis Bank, HDFC Bank, ICICI Bank, IDFC First Bank, Federal Bank, Kotak Mahindra Bank, and Bandhan Bank\u2014will collectively sell a 6.81% stake for \u20b94,594 crore. The shares are being sold at \u20b921.5 per share.<\/p>\n

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This is the largest cross-border investment in the Indian banking sector to date.<\/p>\n<\/blockquote>\n

The stake sale marks a major milestone in Yes Bank\u2019s turnaround journey, which began after the implementation of the Yes Bank Reconstruction Scheme in March 2020, when several banks, led by SBI, stepped in to rescue the struggling private lender.<\/p>\n

Yes Bank Shares Rally Post Announcement<\/h3>\n

Following the announcement, shares of Yes Bank surged 10% on the BSE, closing at \u20b920.05\u2014its highest level since February 5.<\/p>\n

The deal is subject to the necessary regulatory and statutory approvals from the Reserve Bank of India (RBI), Competition Commission of India (CCI), and will follow standard closing procedures.<\/p>\n

SMBC Sees Long-Term Potential in Indian Market<\/h3>\n

SMBC, a core banking subsidiary of Sumitomo Mitsui Financial Group (SMFG) and Japan\u2019s second-largest bank, sees India as a high-growth market.<\/p>\n

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\u201cIndia represents a key market for us\u2026 we are proud to invest in Yes Bank,\u201d said SMBC in a joint statement by their top executives.<\/p>\n<\/blockquote>\n

The Japanese banking giant believes this investment aligns with its strategy of building long-term, value-driven relationships in fast-growing economies.<\/p>\n

Yes Bank Sees a New Phase of Growth<\/h3>\n

Yes Bank\u2019s leadership views the investment as a strong endorsement of the bank\u2019s transformation journey and its potential for future growth.<\/p>\n

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\u201cWe are excited to welcome SMBC as a major shareholder. This is a pivotal step in our next phase of growth,\u201d said Prashant Kumar, Managing Director & CEO of Yes Bank.<\/p>\n<\/blockquote>\n

He also acknowledged the continued support of SBI, stating that the public-sector lender will remain a \u201cvalued stakeholder\u201d even after reducing its stake.<\/p>\n

Private and Institutional Holdings in Yes Bank<\/h3>\n

Currently, Advent International and Carlyle Group hold 9.2% and 6.84% stakes in Yes Bank respectively, while Life Insurance Corporation of India (LIC) holds 3.98%.<\/p>\n

The entry of SMBC as a major shareholder is expected to strengthen Yes Bank\u2019s global partnerships and enhance its governance and operational capabilities.<\/p>\n

A Rare Foreign Stake in Indian Banking<\/h3>\n

Foreign ownership in Indian banks remains limited due to stringent regulatory norms and state dominance. In fact, the last major foreign acquisition in the Indian banking space was the takeover of Lakshmi Vilas Bank by DBS Group in 2020.<\/p>\n

This deal could mark a turning point for global interest in India\u2019s banking sector, especially if regulatory approval paves the way for similar future investments.<\/p>\n

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<\/div>\n","protected":false},"excerpt":{"rendered":"

In a landmark move for the Indian banking industry, Japan\u2019s Sumitomo Mitsui Banking Corporation (SMBC) has signed a definitive agreement to acquire a 20% stake in Yes Bank for \u20b913,483 crore through a secondary transaction. SBI to Sell 13.19% Stake, Other Banks to Offload 6.81% As part of the deal announced on May 9, 2025, […]<\/p>\n","protected":false},"author":2,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1329],"class_list":{"0":"post-8371","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1329,"user_id":2,"is_guest":0,"slug":"snehagandhi","display_name":"Sneha Gandhi","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/10\/Sneha-Gandhi.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=8371"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8371\/revisions"}],"predecessor-version":[{"id":8372,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8371\/revisions\/8372"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/8184"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=8371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=8371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=8371"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=8371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}