From Federal Bank to RBL: Big Investors Pour Billions into India’s Banks

The Indian financial sector has already witnessed transactions exceeding $7 billion in the current financial year, with the latest notable deal being Blackstone-affiliate’s investment in private sector lender Federal Bank. This comes amid a series of high-value deals, with marquee investors showing strong confidence in India’s financial landscape.

Federal Bank

Federal Bank recently approved the issuance of convertible warrants to a Blackstone affiliate, amounting to ₹6,196 crore for up to a 9.99% stake. A total of 27.29 crore warrants will be issued, each allowing the subscription of one fully paid-up equity share at ₹227 per share, closely aligned with the stock’s closing price on Thursday.

RBL Bank

Emirates NBD announced a ₹26,853 crore investment in RBL Bank for up to a 60% stake, including a mandatory open offer.

Sammaan Capital

Earlier this month, Sammaan Capital revealed that Abu Dhabi-based International Holding Company would invest $1 billion (approximately ₹8,850 crore) in the non-banking lender. The investment, structured via a preferential allotment of shares and warrants for up to a 41% stake, will also trigger a mandatory open offer for an additional 26%.

Yes Bank

In May, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) announced plans to acquire up to 20% of Yes Bank from a consortium of lenders who had rescued the bank during the 2020 liquidity crisis. SMBC subsequently signed a definitive agreement to acquire an additional 4.2% stake, bringing its total holding to 24.2% with an investment of nearly ₹15,000 crore.

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IDFC First Bank

Earlier this year, IDFC First Bank raised ₹7,500 crore through Compulsorily Convertible Preference Shares (CCPS) issued to Currant Sea Investments B.V., a Warburg Pincus unit, and another ₹2,624 crore from the Abu Dhabi Investment Authority. The combined transactions resulted in a 10% stake dilution.

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