SBI to sell around 13% stake in YES Bank to Japan's SMBC. Full details here

State Bank of India (SBI) on Friday announced that it would sell around 13 per cent of its holding in YES Bank Ltd to Japan's Sumitomo Mitsui Banking Corporation (SMBC). The deal is expected to happen within 12 months from the date of execution or such other date as mutually agreed.

"We advise that the Executive Committee of the Central Board (ECCB) of the Bank in the meeting held on May 9, 2025 has accorded approval to divest 413,44,04,897 equity shares of Yes Bank Ltd (YBL), being equivalent to 13.19 per cent (approx.) of YBL shares to Sumitomo Mitsui Banking Corporation (SMBC), at Rs 21.50 per equity share, for a consideration of Rs 88,88,97,05,285 and paisa 50 only (Rs 8,888.97 crore approx.), subject to receipt of all regulatory and statutory approvals by the acquirer," the country's largest lender stated in a BSE filing.

On the stock-specific front, YES Bank shares were on a roll today as it climbed 11.74 per cent to hit an intraday high of Rs 20.36. The stock eventually settled 9.77 per cent higher at Rs 20. And, SBI closed 1.39 per cent up at Rs 779.40.

SBI currently owned a 24 per cent stake in the bank, while other domestic entities such as Kotak Mahindra Bank, Axis Bank, ICICI Bank and Life Insurance Corporation of India (LIC) held a combined stake of 11.34 per cent in YES Bank. And, private equity (PE) funds Advent International and Carlyle reportedly held 9.2 per cent and 6.84 per cent, respectively.

Once this happens, SBI's stake in the private lender will be reduced to 10.81 per cent. A few market experts believe that this stake sale could be beneficial for the beaten-down YES Bank stock.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, the recent report of a foreign bank acquiring a substantial stake in YES Bank has been creating some positive momentum on the counter. "The last quarter's results have been good and also the BFSI sector's outlook is creating some buying interest in the private lender. Investors with a high-risk appetite and long-term view can hold on to YES Bank," he added.

Amit Goel, co-founder and chief global strategist at Pace 360, said the asset management company (AMC) has 'aggressively' purchased shares of YES Bank Ltd. "We bought YES Bank (stock) in a very big way. My sense is that there are very good things to happen in the case of YES Bank over the next few months. I believe would definitely give us about 15-20 per cent returns over the next few months. We bought YES Bank very aggressively," he stated.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "The bank has recently staged a notable technical breakout, moving decisively above its trendline resistance — a key signal pointing to a potential shift in momentum. The stock also rebounded strongly from a crucial support level, reinforcing confidence in its stability and near-term upside potential. It is suggesting a trend reversal possibility and if backed by healthy volumes and positive market sentiment, it could open the door for further gains in the sessions ahead."