Blackstone to invest $705 million in Federal Bank, becoming its largest shareholder in India.

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Oct 24 2025

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Source: Reuters

Blackstone's Investment: Blackstone is set to invest approximately $705 million for a 9.9% stake in India's Federal Bank, making it the largest shareholder in the bank.
Growing Dealmaking Activity: The Indian private banking sector is experiencing increased deal activity, with recent significant investments from other international banks, including Emirates NBD and Sumitomo Mitsui Banking Corporation.
Investment Structure: The investment will be made through a Singapore-based affiliate and includes a share-purchase agreement that allows Blackstone to nominate a non-executive director to Federal Bank's board.
Shareholder Approval: The deal is pending approval from Federal Bank's shareholders and regulatory bodies, with a meeting scheduled for November 19 to discuss the preferential share issue and board seat.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.