Corrected: FACTBOX-Large cross-border deals in India's financial sector this year

Yes Bank

24/10/2025 06:51

    (Corrects paragraph two to say mergers are up 54% from a
quarter earlier, not a year earlier)
    By Gopika Gopakumar
       MUMBAI, Oct 14 (Reuters) - India's financial sector has
seen several large deals in 2026, including rare acquisitions of
significant stakes in Indian lenders by foreign banks.
    Mergers and acquisitions worth $2.3 billion were completed
in the sector between July 1 and September 30, 2026, up 54% from
a quarter earlier, according to data from Grant Thornton.
    Here are the key facts about some major deals:
    
    IDBI-Faifax Financial Holdings
    Canada's Fairfax Financial Holdinds will pick up a 60.7%
stake in IDBI bank  IDBI.NS  for 528.78 billion Indian rupees 
($5.56 billion), marking the largest cross-border investment in
the India's financial sector.
    
    Bank of America- Jio Credit
    Bank of America entered into a joint venture agreement to
pick up 49.9% stake in Jio Credit, the lending arm of Jio
Financial Services  JIOF.NS  in August this year in a deal
valued around $1.92 billion  
    
    MUFG - SHRIRAM FINANCE 
    Japan's MUFG  8306.T  will pick up a 20% stake in Shriram
Finance  SHMF.NS  for $4.4 billion.
    
    EMIRATES NBD - RBL BANK
    In October, Dubai-based bank Emirates NBD  ENBD.DU  said it
will buy a 60% stake in Indian private lender RBL Bank  RATB.NS 
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  YESB.NS  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  BX.N , through a
Singapore-based affiliate, in October agreed to invest 61.97
billion rupees ($705.05 million) in India's Federal Bank
 FED.NS  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
 IDFB.NS  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  MNFL.NS  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.


    ($1 = 95.1500 Indian rupees)

    (Reporting by Gopika Gopakumar; Writing by Ira Dugal;
Editing by Sam Holmes, Jan Harvey and Sherry Jacob-Phillips)
 ((Ira.Dugal@thomsonreuters.com; +91-9833024892;))