Blackstone gets India's central bank nod to buy Federal Bank stake (updated)

Federal Bank

05/02/2026 15:34

Adds details from paragraph 2 onwards

Feb 5 (Reuters) -
The Indian central bank has approved private equity firm Blackstone's acquisition of up to a 9.99% stake in Federal Bank FED.NS, the private lender said on Thursday.

The deal, which would make Blackstone the largest shareholder in the bank, adds to the growing list of large investments by marquee investors in the financial services sector in India.

Blackstone in October had agreed
to invest
 around $700 million in Federal Bank for a 9.9% stake.

The private equity firm's investment will be done through a Singapore-based affiliate, with the agreement giving Blackstone the right to nominate a non-executive director to the lender's board, Federal Bank had said.

Dealmaking in India's private banking sector has
gained momentum
 over the past year.

Dubai-based Emirates NBD agreed to buy a 60% stake in RBL Bank RATB.NS in October, while Japan's Sumitomo Mitsui Banking Corporation purchased a 20% stake in Yes Bank YESB.NS in May, followed by an additional 4.2% stake in September.

($1 = 90.2620 Indian rupees)

 (Reporting by Nishit Navin; Editing by Shreya Biswas)

 ((Nishit.Navin@thomsonreuters.com;))