Mumbai, May 9 -- Japan's Sumitomo Mitsui Banking Corp. (SMBC) will acquire a 20% stake inYes Bank for Rs.13,482 crore, making it the largest cross-border investment in the Indian banking sector.

SMBC will purchase the shares from State Bank of India and other Yes Bank shareholders at a price of Rs.21.50, valuing the Mumbai-headquartered lender at $7.9 billion.

"SMBC has entered into a definitive agreement on 9 May 2025 to acquire 20% stake in YES Bank through a secondary stake purchase of 13.19% from SBI and 6.81% aggregate stake from other bank shareholders," Yes Bank said in a press statement on Friday.

SMBC will look to increase its holding in Yes Bank over a period of time, eventually triggering an open offer for additional shares,...