MUMBAI, Dec 19 (Reuters) - India's financial sector has seen a number of large deals in 2025, including rare transactions involving ?foreign banks ?buying significant stakes in Indian lenders.
Between January and September 2025, mergers and acquisitions worth $8 billion had 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:
MUFG - SHRIRAM FINANCE
Japan's MUFG will pick up a 20% stake in Shriram Finance for $4.4 billion, ?marking the largest cross-border investment in the India's financial sector.
EMIRATES NBD - RBL BANK
In October, Dubai-based bank Emirates NBD said it will buy a 60% stake in Indian private lender RBL Bank in a deal valued at $3 billion.
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% 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 61.97 billion rupees ($705.05 million) in India's Federal Bank for a 9.9% stake.
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.
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% 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.
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% 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 general and life insurance businesses.
(Reporting by Gopika Gopakumar; Writing by Ira Dugal; Editing by Sam Holmes, Jan Harvey and Sherry Jacob-Phillips)
By Gopika Gopakumar
