India’s financial services companies sees record FDI flowing in

Core Insights - India's financial services sector, including banks and non-banking finance companies (NBFCs), has experienced record foreign direct investment (FDI) in 2025, indicating strong international interest in the market [1]. Group 1: Major Deals - Shriram Finance has entered into an agreement with MUFG Bank for a 20% stake acquisition valued at ₹39,618 crore, marking the largest FDI in an Indian financial services company [1]. - RBL Bank has signed a deal with Emirates NBD Bank for a 60% stake acquisition through a primary infusion of ₹26,850 crore, aiming to scale its business and enter the big banks league [2]. - Federal Bank's board has sold around 10% stake to Blackstone for ₹6,196.51 crore, further consolidating its position in the market [3]. - YES Bank has secured a deal with Sumitomo Mitsui Banking Corporation (SMBC) for a 20% stake for $1.6 billion, with an additional 4.99% stake acquired later, leading to a rating upgrade for YES Bank [4]. - IDFC FIRST Bank plans to raise up to ₹75 billion from Warburg Pincus and ADIA, which will provide a combined 15% stake in the bank if fully converted [5]. - Sammaan Capital is set to receive a $1 billion investment from Abu Dhabi's IHC for a controlling stake, while Manappuram Finance has secured $508 million from Bain Capital for joint control [6]. Group 2: Market Trends - The Shriram and MUFG deal reflects a trend where global banks prefer partnerships with established NBFCs over pursuing new banking licenses in India, potentially accelerating consolidation in the NBFC sector [7].