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Why foreign capital flooding banking sector

The Morning Standard

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November 04, 2025

FINANCIAL SECTOR

- BENN KOCHUVEEDAN @ Mumbai

WHAT'S driving the foreign capital inflows -close to $15 billion so far this year aloneinto financial sector of late? Already foreign institutions own 48.4% in HDFC Bank and 46.8% in ICICI Bank. The regulatory cap for foreign ownership in private banks is 74%.

Since January, there has been an influx of foreign investments in the country's financial services companies, with October capping the biggest deals in Federal Bank and RBL Bank deals. Blackstone invested ₹6,196 crore in Federal Bank, while Emirates NBD acquired 26% stake in RBL Bank for ₹11,636 crore.

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