Federal Bank has announced that it will divest 16.62 crore equity shares in Yes Bank Limited to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) at a price of ₹21.50 per share, amounting to a total consideration of approximately ₹3,572 crore, subject to regulatory approvals.
The transaction was approved by the Board of Directors of Federal Bank and formalised via a Letter Agreement executed on May 9, 2025 with SMBC and Yes Bank. The equity shares involved carry a face value of ₹2 each.
The sale is contingent upon conditions specified in the agreement and is subject to required regulatory clearances under applicable Indian laws. The decision forms part of a broader reshaping of Yes Bank’s ownership, following a similar announcement earlier in the day by State Bank of India, which is selling a 13.19% stake to SMBC.
Federal Bank’s board meeting to approve the transaction began at 2:45 PM and concluded at 3:35 PM on the same day.
Further updates on the transaction, once regulatory approvals are in place, are expected in the coming weeks.
