Blackstone to acquire a 9.99% stake in Federal Bank for $705m.

Blackstone, an American multinational private equity, agreed to acquire a 9.99% stake in Federal Bank, a private sector bank, for $705m. "This landmark partnership with Blackstone is a strong vote of confidence in our team, our 95-year legacy of trust, and our strategy to emerge among the top private sector banks in India. The phased infusion through the warrant structure is deliberate and calibrated. It ensures capital availability aligned to our growth milestones, without immediate dilution. What this means in practice is not just capital. Blackstone, as a strategic partner, brings deep operating experience and access to their significant India portfolio. That ecosystem, combined with their governance discipline and global insights, strengthens our ability to scale, fortify our digital backbone, and widen our national presence. This capital raise also enhances our financial flexibility to evaluate strategic inorganic opportunities should the right fit arise. And also positions us to confidently pursue our aspirations of emerging as India's Most Admired Bank, with focused growth in CASA, mid-yield assets, fee income and long-term focus on our return metrics," K.V.S. Manian, Federal Bank Managing Director & CEO.