Deal Expected By March

State Bank of India (SBI) to Sell 24% Stake in Yes Bank

Deal Expected by March

State Bank of India (SBI), India's largest lender, aims to sell its 24% stake in Yes Bank by March 31, 2023. SBI currently holds 24% of Yes Bank shares, valued at approximately $2.2 billion (Rs 18,420 crore).

Potential Buyers

According to sources, Japanese multinational banking and financial services company Sumitomo Mitsui and Dubai's Emirates NBD are among the potential buyers interested in acquiring SBI's stake in Yes Bank.

Japanese conglomerate Sumitomo Mitsui (SMBC) has been a partner of SBI since 2013. They have jointly invested in several projects in India, including infrastructure and financial services.

Emirates NBD, the largest banking group in the Middle East, has been expanding its presence in India in recent years. It currently has a branch in Mumbai and is looking to expand its operations further.

Significance of the Sale

The sale of SBI's stake in Yes Bank is significant for both banks. SBI will use the proceeds from the sale to strengthen its balance sheet and meet regulatory requirements. For Yes Bank, the sale will provide an opportunity to bring in a new strategic investor and improve its capital position.

Timeline and Outlook

SBI is expected to complete the stake sale by March 31, 2023. The transaction is subject to regulatory approvals and customary closing conditions. The sale is expected to have a positive impact on SBI's financial performance and Yes Bank's long-term prospects.

The deal is expected to be finalized by the end of March 2023. Once completed, SBI will no longer have any stake in Yes Bank.