Blackstone (NYSE:BX) has secured regulatory approval to buy a 9.99 percent stake in Federal Bank.

Blackstone's investment will be conducted through a Singapore-based affiliate, Reuters first reported.

It is understood that this deal would make the private equity firm the largest shareholder in the bank and will give Blackstone the right to nominate an executive director to the lenders board.

In December, Blackstone received approval from the Competition Commission of India (CCI) to invest in Federal Bank through warrants.

PWC reported that they are seeing "significant" regional variance activity, with signals of revitalized growth in Asia, China, India, Japan and the U.S., where regional bank consolidation and recapitalization remain key themes.

Some of the largest deals in recent months include Fifth Third Bancorp's $10.9 billion acquisition of Comerica and the $7.4 billion take-private deal for Air Lease Corporation led by Sumitomo Corporation, SMBC Aviation Capital, Apollo and Brookfield. 

"The continuing megadeals in financial services are a reflection for the need for scale and teach-driven transformation, as well as an increasingly positive sentiment towards M&A. For 2026, we expect this trend to continue with a steady progression of deals, especially mega deals, depending on how geopolitics and the impacts around asset quality play out," Christopher Sur, global financial services deals leader at PwC German said in the report.

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