India’s financial sector has drawn over INR650bn ($7.36bn) in
2025 from major global institutions including Emirates NBD,
Blackstone, Sumitomo Mitsui Banking Corp (SMBC), Abu Dhabi
Investment Authority (ADIA) and International Holding Co (IHC), as
investors seek steady returns amid global volatility. These
investors have acquired stakes in Federal Bank, RBL Bank, Yes Bank,
Sammaan Capital and IDFC First Bank, underscoring growing foreign
confidence in India’s banking landscape, state owned Prasar
Bharti reported.
Analysts said the combination of macroeconomic stability,
regulatory clarity and improving asset quality has positioned India
as a rare mix of growth and resilience. India’s central bank, the
Reserve Bank of India, recently strengthened this sentiment through
its announcement on the new Expected Credit Loss (ECL) framework,
which will be introduced in phases from April 1, 2027, and fully
adopted by March 31, 2031. The move is expected to streamline
compliance and capital planning across lenders.
India’s State Bank of India Securities’s head of fundamental
research, S. Agrawal, noted that strong reforms and the lowest
non-performing asset levels in a decade have enhanced investor
confidence. Meanwhile, Master Capital Services’ associate
vice-president for research and advisory, Vishnu Kant Upadhyay,
said that large-scale foreign stakes in Yes Bank, Federal Bank and
RBL Bank reflect trust in governance, profitability and
scalability.
With India’s GDP growth projected at 6.8% for FY2026, analysts
believe the country’s expanding digital infrastructure and
underbanked population offer long-term growth prospects, making the
financial sector an attractive low-risk, high-opportunity
market.
© 2025 bne IntelliNews, source Magazine
