State Bank of India is planning to sell its 24% stake in Yes Bank, valued at ₹18,420 crore, by the end of March.

What Happened: Japanese lender Sumitomo Mitsui Banking Corp and Dubai-based Emirates NBD are in advanced talks to acquire a majority stake in Yes Bank, Reuters reported citing sources.

SBI currently holds a 24% stake in Yes Bank, while 11 other lenders, including ICICI Bank and HDFC Bank, hold a combined 9.74%. Two private equity funds – CA Basque Investments and Verventa Holdings – collectively hold another 16.05%.

The report said that both the bidders want to acquire a majority 51% stake in Yes Bank to gain substantial control over the bank’s operations. The Reserve Bank of India (RBI) has given a verbal nod to the proposal, the report added.

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The potential buyers are seeking a relaxation on the regulatory requirement that promoter shareholding be reduced to 26% within 15 years of the investment. SBI is expecting to make a profit of around ₹10,000 crore.

Yes Bank’s current market price stands at ₹24.60, valuing the bank at ₹77,095 crore. The deal could face delays due to market volatility in Japan and a parallel government stake sale process in IDBI Bank, a source added.

The report added that SBI categorically denies any development in this matter while Yes Bank denied comments on the matter.

Earlier, reports stated that the CEO of Sumitomo Mitsui Banking Corporation (SMBC), Akihiro Fukutome, is coming to India to discuss the purchase of a stake in Yes Bank.

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