Blackstone has received approval from India’s central bank to acquire a stake in Federal Bank, advancing its push into the country’s financial services sector, Reuters reported. 

The Reserve Bank of India cleared Blackstone to purchase up to 9.99% of the bank, according to the filing. The approval allows the firm to proceed with the investment, which would make Blackstone one of Federal Bank’s largest shareholders.

Blackstone has been expanding its exposure to Indian financials through both control and minority positions, targeting long-term growth driven by rising credit demand, formalisation of the economy, and increasing retail participation.

Federal Bank is a mid-sized private lender with a growing footprint across retail and corporate banking. The transaction remains subject to additional conditions and disclosures, as required under Indian banking regulations.

The approval highlights continued foreign private equity interest in Indian banks, even as regulatory scrutiny remains tight on ownership, governance, and capital adequacy.

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