Foreign Capital Floods India's Financial Sector in Recent Deal Surge

August 14, 2026, 12:49 AM

Finance and Investing

Foreign Capital Floods India’s Financial Sector in Recent Deal Surge

India’s financial sector has attracted significant foreign capital, recording major cross-border M&A transactions since 2025. Foreign inbound investment into the sector totaled $11.7 billion in 2025, followed by another $1.4 billion in deals through June 2026, according to Grant Thornton data.

Major Deals Timeline

Bank of America – Jio Credit (Aug 2026): Bank of America agreed to acquire up to 49.9% of Jio Financial Services’ non-banking arm for ₹182.68 billion ($1.92 billion) via equity shares and warrants, forming a strategic joint venture.
Meta – CRED (June 2026): Meta invested $900 million in Indian fintech CRED at a $4.5 billion valuation. As part of the transaction, CRED founder Kunal Shah was named global head of WhatsApp.
MUFG – Shriram Finance (Dec 2025): Japan’s MUFG executed India’s largest cross-border financial sector deal, purchasing a 20% stake in Shriram Finance for $4.4 billion.
Emirates NBD – RBL Bank (Oct 2025): Dubai’s Emirates NBD acquired a 60% controlling stake in RBL Bank for $3 billion to expand its branch presence across India.
Blackstone – Federal Bank (Oct 2025): Private equity firm Blackstone invested ₹61.97 billion ($705.05 million) for a 9.9% stake in Federal Bank via a Singapore affiliate.
IHC – Sammaan Capital (Oct 2025): Abu Dhabi’s International Holding Company invested nearly $1 billion to acquire a 43.5% stake in housing-focused non-bank lender Sammaan Capital.
SMBC – Yes Bank (May & Sept 2025): Japan’s Sumitomo Mitsui Banking Corporation bought an initial 20% stake in Yes Bank from a consortium of rescue lenders for $1.6 billion in May, followed by an additional 4.99% stake in September.
Warburg Pincus, ADIA – IDFC FIRST Bank (April 2025): Warburg Pincus and the Abu Dhabi Investment Authority injected $877 million into IDFC FIRST Bank via convertible preference shares.
Bajaj Group – Allianz (March 2025): Bajaj Group repurchased Allianz’s 26% stake in their general and life insurance joint ventures for $2.8 billion, dissolving their ten-year partnership.
Bain Capital – Manappuram Finance (March 2025): Bain Capital acquired an 18% stake in gold-loan provider Manappuram Finance for $508 million.