India’s Federal Bank announced on October 24 that it will sell a 9.99% stake to Asia II Topco XIII Pte. Ltd., an affiliate of private equity firm Blackstone, for $705 million. Once finalized, this deal will make the Blackstone affiliate the bank’s largest shareholder. The bank’s Board has also approved granting Blackstone the right to nominate one non-executive director after all warrants are exercised. The bank will hold an Extraordinary General Meeting on November 19 to seek Shareholder approval.
Blackstone President and COO Jon Gray praised India’s economic resilience, noting, “India is investing heavily in infrastructure and has a rapidly rising middle class. This is a place we particularly like.” He reiterated the country’s strong fundamentals, expanding middle class, and aggressive infrastructure investments as key drivers of “long-term opportunity”. He also highlighted India’s appeal beyond finance, pointing to real estate and secondary markets as global investment hot spots.
The Federal Bank deal reflects a broader surge in global interest in India’s financial sector. Earlier this month, Emirates NBD, the UAE’s second-largest bank, announced plans to acquire a majority stake in RBL Bank for $3 billion. Other institutions such as IDFC FIRST Bank and Sammaan Capital have also secured funding from global investors including Warburg Pincus and Abu Dhabi’s International Holding Company.
Gray expressed optimism about commercial real estate, noting a shift in market dynamics after years of difficulty. With new supply down nearly 70%, falling costs, and repriced assets, he believes now is a prime time for investment in the sector.
Last updated: December 26th, 2025
