India’s financial sector has experienced significant activity in 2025, highlighted by several large deals, including notable transactions involving foreign banks acquiring substantial stakes in Indian lenders. According to data from Grant Thornton, merger and acquisition activity in the banking sector has reached $8 billion between January and September 2025, reflecting a 127% increase compared to the same timeframe last year.
Emirates NBD-RBL Bank
Dubai’s Emirates NBD has announced its intent to acquire a 60% stake in RBL Bank, a private lender in India, for $3 billion. This acquisition marks the largest overseas purchase in the Indian financial landscape to date. Following the acquisition, Emirates NBD plans to integrate its operations with its local subsidiary, leveraging RBL’s extensive branch network.
SMBC – Yes Bank
In May 2025, Sumitomo Mitsui Banking Corporation (SMBC) of Japan agreed to acquire a 20% stake in Yes Bank for $1.6 billion. This stake was purchased from a consortium of Indian banks that had previously provided a bailout for the bank in 2020. Additionally, SMBC acquired an extra 4.99% stake in September.
Blackstone-Federal Bank
Private equity firm Blackstone, through its Singapore-based affiliate, announced in October an investment of ₹6,197 crore (approximately $705.05 million) in Federal Bank, securing a 9.9% stake through preferential equity shares. This agreement also grants Blackstone’s affiliate the right to nominate one non-executive director to Federal Bank’s board.
IHC – Sammaan Capital
Earlier this month, Abu Dhabi’s International Holding Company (IHC) reached an agreement to invest nearly $1 billion to obtain a 43.5% stake in Sammaan Capital, a non-bank lender that specializes in housing loans. IHC is also set to launch an open offer aimed at acquiring an additional 26% stake for retail investors, in accordance with Indian takeover regulations. This investment stands among the largest in India’s non-banking financial sector.
Warburg Pincus, ADIA – IDFC FIRST Bank
In April, Warburg Pincus and the Abu Dhabi Investment Authority (ADIA) finalized an agreement to invest $877 million in IDFC FIRST Bank via convertible preference shares. Following conversion, the two investors will collectively hold a 15% stake in the bank.
Bain Capital – Manappuram Finance
In March, Bain Capital entered an agreement to acquire an 18% stake in Manappuram Finance for $508 million. Bain Capital plans to increase its ownership to over 40% by making an open offer for shares from retail investors. Manappuram Finance is recognized as a major gold-loan non-banking financial company (NBFC) operating over 5,300 branches.
Bajaj Group – Allianz
In March, the Bajaj Group executed a buyback of a 26% stake in its joint ventures—Bajaj Allianz General Insurance Ltd and Bajaj Allianz Life Insurance Ltd—from its partner Allianz for $2.8 billion, concluding a decade-long partnership. Following this change, Allianz has since collaborated with Reliance-owned Jio Financial Services to establish both general and life insurance operations.
Published on October 24, 2025
