India's financial sector sees US$ 8 billion in deals, M&As jump 127% in 2025
- IBEF
- October 27, 2025
India’s financial sector witnessed robust deal activity in 2025, recording mergers and acquisitions (M&A) worth Rs. 70,216 (US$ 8 billion) between January and September 2025, a 127% YoY increase, according to Grant Thornton. The surge was driven by a series of high-value cross-border transactions, signalling renewed foreign investor interest in Indian lenders. Emirates NBD’s Rs. 26,331 crore (US$ 3 billion) acquisition of a 60% stake in RBL Bank marked the largest overseas investment in the sector, granting the Dubai-based lender extensive access to India’s retail network. Similarly, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) acquired a 20% stake in Yes Bank for Rs. 14,043 crore (US$ 1.6 billion) in May and an additional 4.99% in September, strengthening its presence in India’s banking landscape.
Private equity activity also intensified, with Blackstone investing Rs. 6,197 crore (US$ 706 million) in Federal Bank for a 9.9% stake. In comparison, Abu Dhabi’s International Holding Company (IHC) bought a 43.5% stake in Sammaan Capital for about Rs. 8,777 crore (US$ 1 billion). In parallel, Warburg Pincus and Abu Dhabi Investment Authority (ADIA) invested Rs. 7,697 crore (US$ 877 million) in IDFC First Bank, and Bain Capital acquired an 18% stake in Manappuram Finance for Rs. 4,459 crore (US$ 508 million). Additionally, Bajaj Group’s Rs. 24,576 crore (US$ 2.8 billion) buyback of Allianz’s stake in their insurance ventures marked a strategic reshaping of India’s financial ecosystem.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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