State Bank of India (SBI) and other lenders have signed a deal with Japan’s Sumitomo Mitsui Banking Corp (SMBC) for a 20% stake sale in Yes Bank through a secondary stake purchase of 13.19% from SBI as well as 6.81% from other equity partnering banks, for a total amount of Rs 13,483 crore, according to an official announcement on Friday.

As per the deal, SBI, which owns 23.97% in Yes Bank, will sell a 13.19% stake for Rs 8,889 crore, while other banks like Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank, would all will sell a combined 6.81% stake for Rs 4,594 crore, according to a Yes Bank exchange filing on Friday.

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At a sale price of Rs 21.5 per share, SBI will earn 115% on its investment and so will other lenders including HDFC Bank (2.75% stake, down from 10% originally), ICICI Bank (2.39%, down from 10% originally), Kotak Mahindra Bank (1.21%) and Axis Bank (1.01%).

Incidentally, LIC owns 3.98% in Yes Bank, while private equity firms like Advent International owns 9.20% and Carlyle owns 6.82%, but neither Advent nor Carlyle participated in the deal.

Sumitomo Mitsui Banking Corporation (SMBC), which is a part of the Sumitomo Mitsui Financial Group (SMFG), is the second largest bank in Japan with $1.72 trillion in total assets held across its operations in 39 countries, with almost half of them in the Asia-Pacific region.

“This transaction is the largest cross-border investment in the domestic banking sector. It is subject to the necessary regulatory and statutory approvals, including from the Reserve Bank and the Competition Commission of India. It will be subject to customary closing conditions,” according to a Yes Bank statement.

The transaction is a significant milestone to drive Yes Bank’s next phase of growth, profitability and value creation and is expected to leverage SMBC’s global expertise in this phase, the statement mentioned.

“We are excited to welcome SMBC, a globally renowned financial partner, as a major shareholder whose investment marks a pivotal step in our next phase of growth. We expect to benefit from their global expertise and high governance standards. This investment is a powerful endorsement of our transformation journey and future potential. Over the past few years, our growth has been shaped by the strong partnership and unwavering support of the SBI and they will continue to remain a valued stakeholder,” the RBI-appointed MD & CEO of Yes Bank Prashant Kumar, was quoted in the regulatory filing.

SMFG President & Group Chief Executive Toru Nakashima and SMBC president & chief executive Akihiro Fukutune said, “India represents a key market for us and we see immense long-term potential in its dynamic and fast-growing economy. We are proud to invest in Yes Bank, a leading bank with visionary leadership and a demonstrated track record of improving profitability. This investment aligns with our commitment to building lasting, value driven relationships in the region. We look forward to working closely with the team as a major shareholder in their next phase of growth”.