Kotak Mahindra Bank Ltd (Kotak Bank) came into focus on Wednesday as Japan’s Sumitomo Mitsui Banking Corporation (SMBC) looked to sell up to 3.28 crore shares, representing a 1.65% stake in the private lender. The shares are being offered at ₹1,880 apiece, a 4.1% discount to the NSE’s previous closing price of ₹1,960.40. The block deal is valued at ₹6,166 crore ($700 million), according to the term sheet.

Key Highlights

• SMBC exits Kotak Mahindra with ₹6,166 crore block deal at ₹1,880—4% discount. 
• Sale paves way for expanded Yes Bank stake as SMBC redeploys proceeds strategically in India.

Jefferies India and Nomura Financial Advisory are acting as joint placement agents, while Kotak Securities and Jefferies India are serving as trade execution agents. The transaction will be carried out through equity share sales on the screen-based trading platform.

SMBC, a wholly-owned subsidiary of Sumitomo Mitsui Financial Group, operates as a foreign bank in India with branches in New Delhi, Mumbai, Chennai, and an offshore unit in GIFT City, Gandhinagar. It offers services such as loans, deposits, and letters of credit.

The development comes after the Competition Commission of India recently approved SMBC’s acquisition of a stake in YES Bank. Reports suggest the Japanese bank may infuse an additional ₹16,000 crore into YES Bank through equity and yen-denominated bonds to strengthen its balance sheet.

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Meanwhile, Kotak Bank’s June quarter performance was weak, with core profit after tax declining 13.7% due to lower provisions, fees, and net interest income (NII). Analysts flagged sluggish retail growth and slower recovery in unsecured lending, though SME and mid-market segments showed resilience.