Sumitomo Mitsui to Divest ₹60 Billion Stake in Kotak Mahindra, Eyes Strategic Entry into Yes Bank

Sumitomo Mitsui Banking Corporation (SMBC), one of Japan’s leading financial institutions, is reportedly preparing to sell its 1.65% stake in Kotak Mahindra Bank Ltd, valued at approximately ₹60 billion, according to Moneycontrol citing CNBC-Awaaz. The move is seen as a strategic capital reallocation to support SMBC’s proposed investment in Yes Bank, signaling a recalibration of its India portfolio toward deeper operational engagement.

 

Key Highlights

The 1.65% stake translates to approximately 32.8 million shares of Kotak Mahindra Bank, a holding that has remained unchanged over multiple quarters. While Kotak remains one of India’s most respected private lenders, SMBC’s interest in Yes Bank suggests a pivot toward institutions where it can play a more direct role in governance, lending, and cross-border banking synergies.

 

Yes Bank, which has undergone a major restructuring since its bailout in 2020, is now seen as a turnaround candidate with improving asset quality and capital adequacy. SMBC’s potential entry could bring global expertise, capital infusion, and enhanced credibility to the bank’s recovery narrative.

 

Market analysts believe the timing of the stake sale is opportune, given Kotak’s stable share price and strong institutional demand. The divestment is unlikely to impact Kotak’s fundamentals, as the stake is relatively small and held under the public category.

 

For SMBC, the move aligns with its broader Asia-Pacific strategy, which emphasizes scalable partnerships and operational control in high-growth markets. The Japanese bank has been expanding its footprint in India through corporate lending, project finance, and trade facilitation, and a deeper role in Yes Bank could accelerate its ambitions.

 

The transaction, if executed, will be closely watched by investors for its implications on both Kotak Mahindra Bank’s shareholder structure and Yes Bank’s strategic trajectory.

 

Sources: Moneycontrol, [CNBC-Awaaz], Trendlyne Shareholding Data – Kotak Mahindra Bank