Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is set to exit Kotak Mahindra Bank by offloading its entire 1.65% stake through block deals. The move comes as the lender prepares to invest heavily in YES Bank, following regulatory approvals.
Reports suggest SMBC will sell its Kotak stake at a floor price of ₹1,880 per share, representing a 4.06% discount to Tuesday’s close of ₹1,959.65 on the BSE. At this floor price, the transaction value is pegged at about ₹6,166 crore.
Kotak Mahindra Bank’s shares gained over 1% to ₹1,990 in early trade on Wednesday, taking its market capitalisation to ₹3.93 lakh crore. Trading volumes spiked, with 9.14 lakh shares changing hands in the first two hours, far higher than the two-week average of 0.82 lakh.
The exit comes ahead of SMBC’s plan to buy up to 24.99% in YES Bank. On August 22, 2025, the Reserve Bank of India cleared the proposal, subject to Competition Commission of India approval and other conditions.
YES Bank shares rose 2.8% to ₹20.92 on the BSE following the development. Broader indices also firmed up, with both the Sensex and Nifty climbing more than 0.5% each, tracking positive global cues.
SMBC’s entry into YES Bank is expected to be through secondary stake purchases. Of the proposed 24.99% holding, 13.19% would come from State Bank of India, while 6.81% would be acquired from seven other shareholders.
SBI currently holds 23.97% in YES Bank and has been seeking an exit after the bank’s turnaround since its 2020 rescue, when the RBI intervened following a liquidity crisis.
