Image Source: Federal Bank
Federal Bank Ltd secures RBI approval on February 5, 2026, allowing Asia II Topco XIII Pte. Ltd., a Blackstone affiliate, to acquire up to 9.99% stake in its share capital or voting rights. Linked to a Rs 6,197 crore warrant issue, this boosts capital for growth while adhering to strict Banking Regulation Act, FEMA, and SEBI norms.
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Federal Bank Ltd received RBI approval on February 5, 2026, for Asia II Topco XIII Pte. Ltd. to acquire up to 9.99% aggregate holding in the bank's paid-up share capital or voting rights. This strategic foreign investment, linked to prior warrant issuance plans worth over Rs 6,000 crore, underscores growing global trust in Indian private banking. Compliance with key regulations ensures seamless execution.
Key Highlights
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Asia II Topco XIII Pte. Ltd., a Blackstone affiliate, secures pivotal RBI nod for Federal Bank stake acquisition, signaling robust capital infusion prospects.
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Approval caps at 9.99% of share capital or voting rights, aligning with RBI's foreign investment thresholds for commercial banks.
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Ties to October 2025 board-approved preferential warrant issue of up to 27.29 crore units at Rs 227 each, potentially raising Rs 6,197 crore on full conversion.
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Mandatory adherence to Banking Regulation Act 1949, RBI Directions 2025 (November 28), FEMA 1999, and SEBI rules safeguards regulatory integrity.
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Company Secretary Samir P Rajdev affirmed full compliance, highlighting bank's commitment to transparent foreign investments.
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This move bolsters Federal Bank's capital base, supporting retail, corporate, and digital banking expansion amid India's economic growth.
Federal Bank, founded in 1931 and headquartered in Aluva, Kerala, strengthens its position as a leading private sector lender with this endorsement. The real-time development reflects surging foreign direct investment in India's banking sector, promising enhanced growth and stability.
Sources: PSUConnect.in, InvestyWise.com
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