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 per cent increase over the same period last year, according to data by Grant Thornton.
Here are key facts about the major deals:
EMIRATES NBD-RBL BANK
Dubai-based bank Emirates NBD will buy a 60 per cent 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.
SMBC – YES BANK
In May, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) agreed to acquire a 20 per cent 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.
Blackstone-Federal Bank
Private equity firm Blackstone, through a Singapore-based affiliate, in October agreed to invest ₹6,197 crore ($705.05 million) in Federal Bank, for a 9.9 per cent 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 Federal Bank’s board.
IHC – SAMMAAN CAPITAL
Earlier this month, Abu Dhabi’s International Holding Company (IHC) agreed to invest close to $1 billion to buy a 43.5 per cent stake in Sammaan Capital, a non-bank lender focused on housing loans.
IHC will launch an open offer to buy an additional 26 per cent stake for retail investors as per Indian takeover regulations.
The investment was among the largest in India’s non-bank financial sector.
WARBURG PINCUS, ADIA – IDFC FIRST BANK
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 per cent on conversion of the shares.
BAIN CAPITAL – MANAPPURAM FINANCE
In March, Bain Capital agreed to acquire an 18 per cent stake in Manappuram Finance for $508 million. Bain will raise its stake to over 40 per cent 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, the Bajaj Group bought back a 26 per cent 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.