SMBC to sell 1.65% stake in Kotak Mahindra Bank via block deal; check details
Yes Bank recently announced that the Reserve Bank of India (RBI) has cleared SMBC’s proposal to acquire up to 24.99% of the private lender’s equity. The RBI also confirmed that SMBC will not be classified as a “promoter” of Yes Bank following the transaction, thereby exempting it from additional regulatory obligations.
- Sep 9, 2025,
- Updated Sep 9, 2025 6:30 PM IST
Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is preparing to divest a 1.65% stake in Kotak Mahindra Bank via a block deal valued at Rs 6,166 crore, according to CNBC TV-18. The shares are being offered at a floor price of Rs 1,880 each, reflecting a discount of roughly 4.1% compared to the private lender’s most recent closing price on the National Stock Exchange.
Reports from CNBC Awaaz indicate that SMBC intends to use the proceeds from the sale to fund its acquisition of a stake in Yes Bank. To gauge market interest, brokerages have approached foreign institutional investors (FIIs) and mutual funds regarding participation in the block deal.
Yes Bank recently announced that the Reserve Bank of India (RBI) has cleared SMBC’s proposal to acquire up to 24.99% of the private lender’s equity. The RBI also confirmed that SMBC will not be classified as a “promoter” of Yes Bank following the transaction, thereby exempting it from additional regulatory obligations. Earlier this month, the Competition Commission of India (CCI) similarly approved SMBC’s proposed stake acquisition in Yes Bank, signaling alignment with regulatory requirements.
SMBC currently holds a 20% stake in Yes Bank, acquired in May 2025 through a secondary purchase. This included a 13.19% stake from the State Bank of India (SBI) and a combined 6.81% from seven other domestic lenders, including Axis Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. The RBI’s approval is valid for one year, enabling SMBC to increase its stake further. As of June 2025, domestic banks collectively owned 33.7% of Yes Bank, with SBI as the largest single shareholder at 23.96%. Foreign investors CA Basque Investments and Verventa Holdings held 4.22% and 9.2%, respectively.
SMBC, a wholly owned subsidiary of Sumitomo Mitsui Financial Group (SMFG)—Japan’s second-largest banking group with assets of $2 trillion—operates in India through branches in New Delhi, Mumbai, Chennai, and GIFT City. Its planned investment in Yes Bank is expected to bolster the private lender’s capital base while deepening India-Japan banking collaboration. In May, SMBC had announced a 20% stake acquisition in Yes Bank worth ₹13,482 crore, representing one of the largest cross-border investments in India’s banking sector.
Under the stake sale plan, SBI will divest 13.19%, while seven other banks—Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank—will collectively offload 6.81%. This follows the significant intervention in March 2020 when the RBI had superseded Yes Bank’s board amid financial deterioration, prompting a rescue by a consortium of domestic banks led by SBI.
Shares of Yes Bank rose 0.84% on Tuesday, closing at ₹20.35, marking an 8.42% gain over the past month. Analysts remain divided on the stock’s short- to medium-term prospects. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that the stock lacks momentum, advising cautious or high-risk investors to hold. Meanwhile, Osho Krishan of Angel One identified a resistance range of ₹20.50–21.50, with support around ₹19–19.40, suggesting limited near-term downside.
Technical indicators show that Yes Bank is trading above its key moving averages, with a 14-day relative strength index (RSI) of 62.17. Its price-to-earnings ratio stands at 23.66, price-to-book at 1.38, earnings per share at 0.86, and return on equity at 5.83%. Trendlyne data reports a one-year beta of 1, indicating average volatility.
Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is preparing to divest a 1.65% stake in Kotak Mahindra Bank via a block deal valued at Rs 6,166 crore, according to CNBC TV-18. The shares are being offered at a floor price of Rs 1,880 each, reflecting a discount of roughly 4.1% compared to the private lender’s most recent closing price on the National Stock Exchange.
Reports from CNBC Awaaz indicate that SMBC intends to use the proceeds from the sale to fund its acquisition of a stake in Yes Bank. To gauge market interest, brokerages have approached foreign institutional investors (FIIs) and mutual funds regarding participation in the block deal.
Yes Bank recently announced that the Reserve Bank of India (RBI) has cleared SMBC’s proposal to acquire up to 24.99% of the private lender’s equity. The RBI also confirmed that SMBC will not be classified as a “promoter” of Yes Bank following the transaction, thereby exempting it from additional regulatory obligations. Earlier this month, the Competition Commission of India (CCI) similarly approved SMBC’s proposed stake acquisition in Yes Bank, signaling alignment with regulatory requirements.
SMBC currently holds a 20% stake in Yes Bank, acquired in May 2025 through a secondary purchase. This included a 13.19% stake from the State Bank of India (SBI) and a combined 6.81% from seven other domestic lenders, including Axis Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank. The RBI’s approval is valid for one year, enabling SMBC to increase its stake further. As of June 2025, domestic banks collectively owned 33.7% of Yes Bank, with SBI as the largest single shareholder at 23.96%. Foreign investors CA Basque Investments and Verventa Holdings held 4.22% and 9.2%, respectively.
SMBC, a wholly owned subsidiary of Sumitomo Mitsui Financial Group (SMFG)—Japan’s second-largest banking group with assets of $2 trillion—operates in India through branches in New Delhi, Mumbai, Chennai, and GIFT City. Its planned investment in Yes Bank is expected to bolster the private lender’s capital base while deepening India-Japan banking collaboration. In May, SMBC had announced a 20% stake acquisition in Yes Bank worth ₹13,482 crore, representing one of the largest cross-border investments in India’s banking sector.
Under the stake sale plan, SBI will divest 13.19%, while seven other banks—Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank—will collectively offload 6.81%. This follows the significant intervention in March 2020 when the RBI had superseded Yes Bank’s board amid financial deterioration, prompting a rescue by a consortium of domestic banks led by SBI.
Shares of Yes Bank rose 0.84% on Tuesday, closing at ₹20.35, marking an 8.42% gain over the past month. Analysts remain divided on the stock’s short- to medium-term prospects. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that the stock lacks momentum, advising cautious or high-risk investors to hold. Meanwhile, Osho Krishan of Angel One identified a resistance range of ₹20.50–21.50, with support around ₹19–19.40, suggesting limited near-term downside.
Technical indicators show that Yes Bank is trading above its key moving averages, with a 14-day relative strength index (RSI) of 62.17. Its price-to-earnings ratio stands at 23.66, price-to-book at 1.38, earnings per share at 0.86, and return on equity at 5.83%. Trendlyne data reports a one-year beta of 1, indicating average volatility.