Sumitomo Mitsui to Sell 1.65% Stake in Kotak Mahindra Bank: Report

Sumitomo Mitsui Financial Group is likely to sell a 1.65% stake in Kotak Mahindra Bank, according to a report by Moneycontrol citing CNBC-Awaaz. The move is expected to raise funds for the Japanese bank, which has been facing a decline in its shares. The sale is part of Sumitomo Mitsui's equity buyback plan announced in May 2025.

Sumitomo Mitsui Financial Group (SMFG) is set to sell a 1.65% stake in Kotak Mahindra Bank, according to a report by Moneycontrol citing CNBC-Awaaz. The move is part of SMFG's broader equity buyback plan announced in May 2025, aimed at raising funds to bolster its financial position. This sale comes as SMFG has been experiencing a decline in its share prices, potentially signaling a strategic shift to improve its capital structure.

In recent months, SMFG has been actively acquiring stakes in other financial institutions. Notably, in September 2025, the Japanese bank was approved by India's Competition Commission of India (CCI) to acquire up to 24.99% of Yes Bank, following a prior approval from the Reserve Bank of India (RBI) [2]. This deal, valued at $1.6 billion, represents the largest cross-border merger and acquisition in India's financial sector. The acquisition of Yes Bank is part of SMFG's expansion strategy in the Indian market.

Additionally, institutional investors have been increasing their holdings in SMFG shares. Clark Capital Management Group Inc. recently increased its stake by 1.8%, purchasing an additional 111,952 shares and owning a total of 6,496,260 shares worth approximately $100.4 million [1]. Other institutional investors, such as Lido Advisors LLC, Bank of America Corp DE, and Cetera Investment Advisers, have also raised their positions in SMFG shares during the fourth quarter of 2024.

Despite the recent acquisitions and increased institutional holdings, SMFG's share price has been volatile. On September 2, 2025, SMFG's stock traded down $0.17, hitting $16.46. The company's stock has a 1-year low of $11.83 and a 1-year high of $17.46, with a 50-day moving average of $15.73 and a 200-day moving average of $15.08. The company's market capitalization stands at $105.79 billion, with a PE ratio of 17.32 and a P/E/G ratio of 0.73 [1].

In conclusion, SMFG's planned sale of a 1.65% stake in Kotak Mahindra Bank is a strategic move to raise funds and potentially stabilize its financial position. The sale is part of a broader equity buyback plan and follows recent acquisitions in the Indian market. As SMFG continues to navigate market volatility, investors should closely monitor the company's financial performance and strategic initiatives.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-sumitomo-mitsui-financial-group-inc-smfg-shares-purchased-by-clark-capital-management-group-inc-2025-09-04/
[2] https://www.reuters.com/world/india/india-competition-regulator-approves-smbcs-stake-buy-yes-bank-2025-09-02/