The State Bank of India (SBI) is set to sell its 24% stake in Yes Bank, valued at ₹18,420 crore, by the end of March. Currently, SBI owns a 24% share of Yes Bank, while a group of 11 other lenders, including ICICI Bank and HDFC Bank, together hold 9.74%. Additionally, two private equity firms, CA Basque Investments and Verventa Holdings, hold a combined 16.05% stake.
Japanese lender Sumitomo Mitsui Banking Corp and Dubai-based Emirates NBD are reportedly in advanced negotiations to acquire a majority stake in Yes Bank, aiming for a 51% share to gain significant control over the bank’s operations. According to sources, the Reserve Bank of India (RBI) has verbally approved this proposal. However, the potential buyers are requesting a relaxation of the regulatory requirement that mandates promoter shareholding be reduced to 26% within 15 years of the investment. SBI anticipates a profit of around ₹10,000 crore from this sale.
As of now, Yes Bank’s market price is ₹24.60, giving the bank a total valuation of ₹77,095 crore. The deal may experience delays due to market volatility in Japan and the ongoing government stake sale process in IDBI Bank. SBI has denied any developments regarding the matter, and Yes Bank has also refrained from commenting. Earlier reports indicated that Akihiro Fukutome, CEO of Sumitomo Mitsui Banking Corporation (SMBC), is scheduled to visit India to discuss the potential acquisition of a stake in Yes Bank. Following the news, Yes Bank’s share price dropped approximately 1% to ₹24.23 per share, while the BSE Sensex fell by 705 points (0.9%) to 78,943. SBI’s share price also decreased by 1.7% to ₹798.5 per share. It is worth noting that on July 9, Yes Bank clarified in an exchange filing that reports suggesting the RBI had approved the sale of a 51% stake are "factually incorrect." The bank was restructured by the RBI in March 2020 with assistance from a consortium of local banks after experiencing a significant financial downturn.