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

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 year 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)