Indian banking sector sees wave of foreign investments, say experts

Experts attribute the trend to country's growth potential, regulatory stance

India’s robust long-term growth outlook, along with the increasingly accommodative approach to foreign investment in banking on the part of the Reserve Bank of India (RBI) and the government, is fuelling a wave of deal making aimed at creating larger and stronger banks, according to industry experts.

 

This year, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) bought a 24.22 per cent stake in Yes Bank. State Bank of India (SBI), along with seven private banks that had invested in Yes Bank during its reconstruction phase in March 2020, collectively sold their 20 per cent to SMBC for Rs13,482 crore.

 

SMBC picked