MUMBAI: The US-based private equity firm Blackstone is set to acquire nearly 10% stake in Federal Bank for Rs 6,196.5 crore. The Kerala-based bank's board approved the proposal on Friday, it now requires shareholder and regulatory clearances, including from RBI and Competition Commission of India. This is the latest instance where an Indian lender has tapped private capital through a large-ticket deal this year. The deal activity has driven debate on whether RBI is taking a more liberal view of foreign strategic ownership in banks.

"This is indeed a very wise and pragmatic move as it serves dual purpose for RBI: get patient, long-term foreign capital from credible sources and strengthen further the banking system as the guys coming in are with deep pockets. Large-scale investments are

See Full Page