2025: A year of large cross-border deals in India's financial sector

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.


Also read: Shriram Finance confirms selling 20% stake to Japan's MUFG in ₹39,617-cr deal; shares soar

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.

Also read: Japan's SMBC to take 20% stake in India's Yes Bank

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.

Also read: Abu Dhabi's IHC gets CCI nod to acquire stake in Sammaan Capital

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.

Also read: Sebi approves Bain Capital open offer for Manappuram Finance stake

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.