The events leading up to State Bank of India's stake sale in Yes Bank
SBI has completed the sale of 13.18% stake in Yes Bank to Japanese lender Sumitomo Mitsui Banking Corp (SMBC). Here is a timeline of events leading to the transaction, the largest cross-border investment in the Indian banking sector.
Mumbai: India’s largest lender State Bank of India (SBI) on Wednesday said it has completed the sale of 13.18% stake in Yes Bank Ltd to Japanese lender Sumitomo Mitsui Banking Corp. (SMBC). When the transaction was announced on 9 May, SBI held a 23.97% stake in Yes Bank.
Following a deterioration in Yes Bank’s financial position, the Reserve Bank of India (RBI) superseded the board in March 2020. Soon after, a clutch of banks led by SBI rescued Yes Bank.
CS Setty, chairman of SBI, on Wednesday said that Yes Bank’s restructuring plan by RBI in 2020 was an innovative, first-of-its-kind public-private partnership that was fully supported and facilitated by the government.
“We are excited to welcome SMBC, a marquee financial institution, as a strategic partner through the largest cross-border transaction in India’s banking sector. Their global expertise will be a great complement to Yes Bank’s ongoing progress and future ambitions,” said Setty.
On Wednesday, shares of SBI rose following the news, closing 3% higher at ₹856.95 apiece on the BSE. Yes Bank rose 0.71% to close at ₹21.15.
Mint chalks out timeline of events leading up to the transaction between SBI and SMBC—the largest cross-border investment in the Indian banking sector.
- March 2020: RBI supersedes the board of Yes Bank after the bank failed to raise adequate capital. It also appointed former SBI chief financial officer Prashant Kumar as the administrator. RBI later appointed him as the bank’s chief executive officer (CEO).
- March 2020: State Bank of India (SBI) and other lenders invested ₹10,000 crore in Yes Bank as part of a rescue plan for the troubled lender. Other investors included erstwhile Housing Development Finance Corp, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First Bank.
- July 2020: Yes Bank raises ₹15,000 crore in a follow-on public offer.
- October 2022: RBI approves reappointment of Prashant Kumar as CEO for three years.
- December 2022: RBI gives conditional approval to private equity investors Carlyle Group and Advent International to acquire up to 9.99% each in Yes Bank.
- December 2022: Yes Bank offloads stressed assets worth ₹48,000 crore to JC Flowers ARC to clean up its balance sheet.
- March 2024: Private sector lender Yes Bank Ltd looks for a new promoter, Mint reports.
- May 2025: Japanese lender Sumitomo Mitsui Banking Corp. says it will acquire a 20% stake in Yes Bank for ₹13,482 crore.
- July 2025: SMBC seeks approval for an additional 4.9% stake in Yes Bank, per Reuters.
- August 2025: The Reserve Bank of India (RBI) approves a proposal by Sumitomo Mitsui Banking Corporation to acquire up to 24.99% in the private sector lender.
- September 2025: The Competition Commission of India approves the acquisition.
- September 2025: SBI completes divestment of 13.18% stake in Yes Bank to SMBC.