Yearender 2025: From MUFG to Emirates NBD, foreign money flows into Indian finance

New Delhi: India has witnessed a slew of big financial sector deals during 2025, leading to a huge inflow of foreign capital. Some of the major deals announced during the year are listed below:

MUFG-Shriram Finance

Japan's Mitsubishi UFJ Financial Group Inc (MUFG) will acquire a 20 per cent stake in Shriram Finance for Rs 39,618 crore (around USD 4.4 billion), marking the largest cross-border investment in India's financial sector to date.

Emirates NBD-RBL Bank

In October, Emirates NBD Bank, the second-largest in the UAE, decided to acquire a majority stake of 60 per cent in RBL Bank for Rs 26,853 crore.

SMBC-YES Bank

Sumitomo Mitsui Banking Corporation (SMBC) in May decided to acquire a 20 per cent stake in Yes Bank for Rs 13,483 crore. The deal was concluded in September with stake transfer to the Japanese firm.

Blackstone-Federal Bank

Federal Bank board in October approved fundraising by issuance of preferential warrant worth over Rs 6,196 crore to Blackstone group entity Asia II Topco XIII Pte Ltd.

After the exercise of warrants into equity shares, Asia II Topco XIII Pte. Ltd will hold a 9.99 per cent stake in Federal Bank. The regulatory approval is awaited.

IHC-Sammaan Capital

Abu Dhabi-based investor Avenir Investment RSC, an affiliate of International Holding Company (IHC), in October agreed to purchase a 43.46 per cent stake in housing finance firm Sammaan Capital for USD 1 billion (about Rs 9,000 crore).

Warburg Pincus & ADIA-IDFC First Bank

IDFC First Bank raised Rs 7,500 crore in aggregate by way of preferential share allotment to arms of Warburg Pincus LLC and Abu Dhabi Investment Authority (ADIA). Both entities together acquired a 15 per cent stake in the private sector bank.

Zurich-Kotak Mahindra General Insurance

Kotak Mahindra General Insurance promoter Kotak Mahindra Bank in February decided to sell its 70 per cent stake in the insurance firm for a total consideration of approximately Rs 5,560 crore, Bain Capital-Manappuram Finance: Bain Capital in March announced and investment of Rs 4,390 crore to acquire an 18 per cent stake in gold loan provider Manappuram Finance.

As far as the outflow of foreign capital is concerned, one major announcement in this regard was the exit of Allianz of Germany from Bajaj Finserv.

Allianz-Bajaj Finserv

Bajaj Finserv decided to acquire Allianz SE's 26 per cent stake in the erstwhile Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company for Rs 24,180 crore.