FILE PHOTO: A logo of Blackstone is pictured in Manhattan, New York City, U.S. July 29, 2025. REUTERS/Mike Segar/File Photo

(Reuters) -Private equity firm Blackstone will invest 61.97 billion rupees ($705.05 million) in India's Federal Bank for a 9.9% stake via preferential equity shares and warrants, the Indian lender said on Friday.

The deal's completion will give Asia II Topco XIII Pte Ltd, the Singapore-based Blackstone affiliate that has entered the share-purchase agreement with the bank, the right to nominate one non-executive director to the Federal Bank's board.

The purchase is subject to clearances from the Reserve Bank of India and the Competition Commission of India.

The bank also needs shareholder approval for the preferential share issue and the seat at the board, which will be decided at its extraordinary general meeting on November 19, 2025.

Federal Bank's shares rose 1.5% to 231.37 rupees after the announcement.

($1 = 87.8950 Indian rupees)

(Reporting by Ashwin Manikandan and Manvi Pant; Editing by Janane Venkatraman)