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Kolkata: The Indian banking industry is in good shape if not in the pink of health. According to Reserve Bank of India data, profitability of banks improved for the sixth consecutive year in 2023-24 and the banking sector is sufficiently capitalised. Economic expansion, rising disposable incomes, growing consumerism and easier credit access have propelled the country's banking sector.
The state of the Indian banking system has an indirect certificate in the form of foreign investment that is chasing this sector. In the year gone by, as much as $15 billion was pumped into the banking industry in half a dozen deals. It signals a confidence that is triggered when supervision and governance standards meet a widening and deepening market. Let's have a closer look at these deals.
Signed on Oct 24, 2025
Financial leviathan Blackstone has invested $705 million to 9.9% stake in Federal Bank. It has been done through Singapore affiliate Asia II Topco XIII, which is an affiliate of Blackstone group. This deal illustrates the fact mid-sized banks can attract foreign capital. It is will involve a preferential issue of warrants of Rs 6,196.5 crore to Asia II Topco XIII on a private placement basis. Each warrant carries the right to subscribe to one fully paid-up equity share of face value Rs 2 at a price of Rs 227 per share, including a premium of Rs 225. The proposed issue involves up to 27.3 crore warrants.
Signed on Dec 19, 2025
Mitsubishi UFJ Financial Group (in short MUFG), one of Japan’s largest banks has concluded an agreement to buy 20% stake in Shriram Finance for Rs 39,618 crore, the largest FDI in financial services domain. The instrument was preferential allotment of 47.1 crore shares at Rs 840.93 each. MUFG will get two board seats but Shriram retains management control. The capital infusion will bolster the NBFC's Tier-1 capital which will help it strengthen MSME and auto loans.
Signed on May 9, 2025
Sumitomo Mitsui Banking Corp is Japan's second largest banking group. It acquired 24.2% stake in YES Bank for Rs 16,333 crore in total. It will help the Japanese giant to enter the prosperous and expanding Indian markets of corporate banking, treasury services, and cross-border financial solutions. Yes Bank , all of which are areas where YES Bank has a strong presence but is lacking in Japanese banking expertise.
Open offer in Dec 2025
Emirates NBD is investing $3 billion to pick up 60% of RBL Bank. It could rise to to 74%. Emirates NBD will secure 959 million new shares at Rs 280 per share. The net value is expected to rise to Rs 42,000-44,500 (from about Rs 15,000 crore). RBL's capital base will be boosted and RBL can raise lending to the corporate sector by utilising Emirates NBD’s global connections, especially in trade links of the Gulf Cooperation Council.
Deal announced Oct 2, 2025
IHC is a global investment company. IHC is investing $1 billion (or about Rs 8,850 crore) in Sammaan Capital to acquire 43.46% stake. Through this deal IHC wants to enter the promising housing sector in the emerging and semi-urban areas of India. It will also help Sammaan Capital to harness the power of AI in credit decisioning as a means to lending efficiency.
