Banks Reap Tax-Free Gains from Yes Bank Stake Sale

Several banks are selling their shares in Yes Bank.

These banks, including SBI, are set to make a large profit, about ₹13,483 crore, without paying taxes because of a special plan.

A Japanese bank, SMBC, is buying these shares, allowing SMBC to become a major stakeholder and appoint directors to Yes Bank's board.

SBI and other private lenders originally bought shares at a lower price.

The sale is expected to provide financial relief for the selling banks, as they are able to avoid the 12.5% long-term capital gains tax.