SBI divests 13.18% stake in Yes Bank to Sumitomo Mitsui Banking Corp for ₹8,889 crore

Core Insights - State Bank of India (SBI) has completed the divestment of approximately 13.18% stake in Yes Bank to Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,888.97 crore, marking a significant transaction in the Indian banking sector [1][3] Group 1: Transaction Details - SBI received ₹8,888.97 crore from SMBC, a major financial institution in Japan, as part of this stake sale [1] - Following the divestment, SBI will retain a 10.8% stake in Yes Bank [3] - This transaction is noted as the largest cross-border investment in the Indian banking sector [3] Group 2: Background and Context - SBI became the largest shareholder of Yes Bank in March 2020 under a Reconstruction Scheme facilitated by the Indian government [2] - SBI had previously acquired additional shares in Yes Bank during a follow-on public offer in July 2020 [2] Group 3: Strategic Implications - SBI Chairman C.S. Setty highlighted the innovative nature of the Yes Bank restructuring plan and the collaborative efforts of SBI, other banks, and the government [4][5] - The partnership with SMBC is expected to enhance Yes Bank's progress and future ambitions, leveraging SMBC's global expertise [5] Group 4: Advisory Role - SBI Capital Markets Limited served as the financial advisor for SBI and other selling shareholder banks during this transaction [6]