Newsletter
The RBI has cleared an approval for Blackstone to acquire up to 9.99% stake in Federal Bank, through its arm Asia II Topco XIII Pte.
Federal Bank is a private sector bank, offering a wide range of retail and corporate banking services across India.
Big theme: the deal adds to a string of big-ticket transactions in India’s private banking space. Over the past year, Emirates NBD agreed to buy a 60% stake in RBL Bank, while Japan’s SMBC acquired a 20% stake in Yes Bank and later raised it by 4.2%.
The surge in such deals reflects global confidence in Indian lenders, driven by strong balance sheets, growth potential.
The opportunity: a key draw is India’s massive population. Large sections of it are still outside the formal financial system. That gap presents a long-term opportunity for banks to expand credit, deposits, and financial inclusion.
