The Federal Bank board on Friday approved a preferential issue of an aggregate of up to about 27.29 crore convertible warrants aggregating ₹6,196.51 crore to an affiliate of Blackstone, marking the alternative assets firm’s maiden investment in the Indian banking sector. It will hold a 9.99 per cent stake on exercise of the warrants.

With this, Kochi-based Federal Bank joins the list of other banks such as IDFC First Bank, Yes Bank and RBL Bank that have attracted the attention of foreign investors.

Global private equity investors and foreign banks have taken a yen for Indian private sector banks in a big way so far in the current financial year. They have either picked up or are in the process of picking up significant to majority stakes in these Banks.

The Bank’s Board also approved t

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