Yes Bank stake sale: SBI seals 13.18% divestment to Japan's SMBC; largest cross-border deal in banking sector

Core Viewpoint - State Bank of India (SBI) has divested approximately 13.18% of its stake in Yes Bank Limited to Japan's Sumitomo Mitsui Banking Corporation (SMBC), marking a significant divestment in India's banking sector [2][3] Group 1: Stake Sale Details - SBI's divestment is part of a larger transaction involving other shareholder banks and is noted as the single largest cross-border investment in India's banking sector [2][3] - Following the sale, SBI retains a residual shareholding of about 10.8% in Yes Bank [2][3] - The transaction received necessary approvals from the Reserve Bank of India and the Competition Commission of India [2][3] Group 2: Historical Context - SBI became the largest shareholder of Yes Bank in March 2020 after the government announced the Yes Bank Limited Reconstruction Scheme [2][3] - SBI increased its holding through a follow-on public offer in July 2020 [2][3] Group 3: Leadership Commentary - SBI Chairman Challa Sreenivasulu Setty described the Yes Bank restructuring plan as an innovative public-private partnership supported by the Government of India [2][3] - Setty expressed pride in the journey shared with Yes Bank since SBI became a major shareholder [2][3] Group 4: Advisory Support - SBI Capital Markets Limited served as the financial advisor, while S&R Associates acted as the legal advisor for the transaction [2][3] Group 5: SBI's Market Position - SBI remains the largest commercial bank in India by assets, deposits, branches, customers, and workforce [2][3]