India's financial sector has seen a number of large deals in 2025, including two rare transactions involving foreign banks buying significant stakes in Indian lenders.
Between January and September 2025, mergers and acquisitions worth $8 billion have concluded across the financial sector, a 127% increase over the same period last year, according to data by Grant Thornton.
Here are key facts about the major deals:
Dubai-based bank Emirates NBD will buy a 60% stake in Indian private lender RBL Bank in a deal valued at $3 billion, the largest overseas acquisition in the Indian financial sector so far.
The deal gives the Middle Eastern lender access to a wide branch network, which it intends to merge with its local subsidiary.
In May, Japan's Sumitomo Mitsui Banking Corporation (SMBC) agreed to acquire a 20% stake in Yes Bank for $1.6 billion.
It bought the stake from a clutch of Indian banks that rescued the bankrupt lender in 2020. It bought an additional 4.99% in September.
Private equity firm Blackstone, through a Singapore-based affliate, in October agreed to invest 61.97 billion rupees ($705.05 million) in India's Federal Bank, for a 9.9% stake via preferential equity shares.
The deal's completion will give Blackstone's affiliate Asia II Topco XIII Pte Ltd the right to nominate one non-executive director to the Federal Bank's board.
Earlier this month, Abu Dhabi's International Holding Company (IHC) agreed to invest close to $1 billion to buy a 43.5% stake in Sammaan Capital, a non-bank lender focused on housing loans.
IHC will launch an open offer to buy an additional 26% stake for retail investors as per Indian takeover regulations.
The investment was among the largest in India's non-bank financial sector.
In April, Warburg Pincus and Abu Dhabi Investment Authority (ADIA) agreed to invest $877 million in IDFC FIRST Bank through convertible preference shares.
Together the two funds will have a combined ownership of 15% on conversion of the shares.
BAIN CAPITAL – MANAPPURAM FINANCE
In March, Bain Capital agreed to acquire an 18% stake in Manappuram Finance for $508 million.
Bain will raise its stake to over 40% after making an open offer for shares from retail investors.
Manappuram is a leading gold-loan NBFC with over 5,300 branches.
BAJAJ GROUP - ALLIANZ
In March, India's Bajaj Group bought back a 26% stake in its two joint venture firms - Bajaj Allianz General Insurance Ltd and Bajaj Allianz Life Insurance Ltd - from its joint venture partner Allianz for $2.8 billion, ending a decade-long partnership.
Allianz thereafter tied up with Reliance-owned Jio Financial Services to set up both general and life insurance businesses.
