RBI Approves Blackstone to Acquire 9.99% Stake in Federal Bank
In February 2026, the Reserve Bank of India (RBI) granted its approval to American private equity firm Blackstone to acquire an up to 9.99% stake in the Federal Bank Limited, an Indian private sector bank.
In February 2026, the Reserve Bank of India (RBI) granted its approval to American private equity firm Blackstone to acquire an up to 9.99% stake in the Federal Bank Limited, an Indian private sector bank.
- This proposed investment by Blackstone is set to mark one of the biggest private equity entries into India’s private banking system.
Key Details:
Background: In December 2025, the Competition Commission of India (CCI) approved Blackstone to acquire a 9.99% stake in Federal Bank through convertible warrants.
Total Investment: As per the proposed arrangement, Blackstone will invest Rs 6,196.51 crore (around USD 700 million) in the private lender through its subsidiary Asia II Topco XIII Pte Ltd via a preferential issue on a private placement basis.
Significance: On the completion of transaction, Blackstone will be authorised to nominate a director to the bank’s board as long as its shareholding remains at or above 5%.
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