BS EDIT: Foreign capital eyes India’s financial sector

By Business StandardPublished On Oct 24, 2025

Growing Interest

Foreign investors are expanding their presence in Indian finance, reflecting confidence in the country’s growth outlook and the potential of private banks

Emirates NBD–RBL Deal

A planned $3 billion investment for up to a 60% stake in RBL Bank could become the largest foreign investment in an Indian private lender to date

Corporate Banking Push

The deal may help RBL grow its corporate banking operations by leveraging Emirates NBD’s existing wholesale presence and global expertise

Not an Isolated Trend

SMBC’s stake in Yes Bank and DBS’s takeover of Lakshmi Vilas Bank highlight persistent foreign interest in India’s banking opportunities

Digital Credit Potential

A fast-growing economy and underserved borrowers attract capital, while digital platforms like UPI are expanding access without raising default risks

Competitive Gains

More foreign ownership in banks and NBFCs can deepen competition, improve services and reduce costs for both retail and corporate customers