Blackstone Invests in Federal Bank
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Foreign Investment Surges in Indian Private Banks
Recent weeks have seen a significant influx of foreign investment into India’s private banking sector, signaling strong confidence in the country’s financial growth. Major players from the UAE, Japan, adn the US are acquiring considerable stakes in key Indian banks.
Updated October 24, 2025, 06:12:30 AM PST
Recent Investment Deals
Federal Bank announced on Friday, October 18, 2024, that Blackstone, a New York-based investment firm, will acquire a 9.99% stake through its affiliate Asia II Topco XIII,investing ₹6,196.51 crore (approximately $740 million USD as of October 24,2025) via a preferential issue as reported by Livemint. This investment concludes speculation surrounding potential stakeholders in the bank.
Last week, Emirates NBD revealed a $3 billion investment for a 60% stake in RBL Bank, marking the largest foreign investment to date in India’s private banking sector according to Reuters.
Earlier in 2024, Japan’s SMBC acquired a 24% stake in Yes Bank as detailed in The Hindu BusinessLine.
Moreover,International Holding Co. PJSC, Abu Dhabi’s largest listed company, purchased a 42% stake in Sammaan Capital for nearly $1 billion as reported by Zawya.
Prior to thes deals, Warburg Pincus and Abu dhabi Investment Authority (ADIA) jointly invested $877 million in IDFC FIRST Bank according to Business Today.
Investment Amounts Summary
| Bank | Investor | Investment Amount (USD) | Stake Acquired | Date |
|---|---|---|---|---|
| Federal Bank | Blackstone | $740 million | 9.99% | October 18, 2024 |
| RBL Bank | Emirates NBD | $3 billion | 60% | October 2024 |
| Yes Bank | SMBC | (Amount not publicly disclosed, estimated at ~$200-300 million) | 24% | Early 2024 |
| Sammaan Capital | International Holding Co. PJSC | $1 billion | 42% | 2024 |
| IDFC FIRST Bank |
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