How have public sector banks performed compared to private banks in India?

Public sector banks in India have outpaced private banks in loan growth, driven by momentum in retail and MSME portfolios. This turnaround comes after years of cleaning up their balance sheets, resulting in robust asset quality and profitability at record highs.

What regulatory reforms have been implemented to boost the Indian banking industry?

The Reserve Bank of India has implemented a series of measures, including rate cuts and liquidity injections, to boost credit growth and improve the ease of doing business in the Indian banking sector. These policy actions have turbocharged sentiment towards the industry.

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India's Banking Sector Lures Global Titans, Reshaping the Landscape

Q: What is the largest-ever foreign direct investment in the Indian banking sector?

The largest-ever foreign direct investment in the Indian banking sector is the acquisition of a majority stake in RBL Bank by Dubai's Emirates NBD for ₹26,850 crore (about $3 billion).

11 Nov

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Summary

Largest-ever foreign direct investment in Indian banking sector
Turnaround of public sector banks, outpacing private peers
Supportive regulatory reforms driving credit growth and liquidity

India's Banking Sector Lures Global Titans, Reshaping the Landscape

India's banking sector is undergoing a transformative phase, attracting significant global investment and witnessing a resurgence of public sector lenders. As of November 2025, the industry has become a prime target for marquee international investors, with several high-profile deals shaping the landscape.

Last month, Dubai's Emirates NBD announced the largest-ever foreign direct investment in the Indian banking sector, acquiring a majority stake in RBL Bank for ₹26,850 crore (about $3 billion). This follows Japan's Sumitomo Mitsui Banking Corp's acquisition of a 24.2% stake in Yes Bank for ₹16,333 crore just weeks earlier. Additionally, global giants like Blackstone and Warburg Pincus have made multi-million-dollar investments in Federal Bank and IDFC First Bank, respectively.