Foreign investment increasing rapidly in Private Banks

In recent years, the Indian government has permitted several foreign entities to invest in private sector banks in India. Some of the important investments are as follows:

1. Japan’s ‍MUFG will buy 20 per cent ​stake in Shriram Finance for $4.4 billion.
2. Emirates NBD Bank’s $3 billion investment for a 60 per cent stake in Indian private ‌lender RBL Bank in ‌November.
3. Sumitomo Mitsui Banking Corporation bought a 24.2 per cent stake in ​Indian lender Yes Bank.
4. Piramal Finance Ltd has entered into an agreement with Sanlam Emerging Markets (Mauritius) Ltd (SEMM), an entity of the Sanlam Group to sell its entire 14.72% equity stake in Shriram Life Insurance (SLI) for about ₹600 crore.
5. Govt will also sell its stake in IDBI Bank to a foreign entity. Fairfax Financial may purchase the Government’s stake.

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