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The flood of foreign money into India’s financial sector this year, over $7 billion and counting, is more than a capital infusion. It’s starting to look like the early rumblings of a structural reset in Indian banking. From Federal Bank’s Rs 6,200 crore Blackstone deal to Emirates NBD’s record Rs 26,853 crore bet on RBL Bank, global investors are rushing to stake claims in Indian lenders and non-banking financiers, fueling talk of a potential reform wave in the sector.In the ongoing financial year, Indian banks and NBFCs have attracted transactions worth over $7 billion, led by a series of high-profile investments. The latest came this week when Kerala-based Federal Bank approved a Rs 6,196 crore issue of convertible warrants to a Blackstone affiliate for up to a 9.99% stake. The warrants, priced at Rs 227 each, are in line with the lender’s Thursday closing price of Rs 232.25.Just days earlier, Emirates NBD made headlines by announcing an Rs 26,853 crore investment in RBL Bank for up to 60% ownership, inclusive of an open offer, marking the largest-ever foreign investment in India’s financial services sector.In the non-banking space, Abu Dhabi’s International Holding Company agreed to infuse $1 billion (Rs 8,850 crore) into Sammaan Capital through a mix of shares and warrants for up to 41% stake, also triggering a mandatory open offer.The year’s first big splash came from Japan’s Sumitomo Mitsui Banking Corporation, which in May picked up a 24.2% stake in Yes Bank through two separate tranches totaling nearly Rs 15,000 crore. Around the same time, IDFC First Bank also raised Rs 7,500 crore from Warburg Pincus and another Rs 2,624 crore from the Abu Dhabi Investment Authority, diluting 10% of its equity base.Meanwhile, Mitsubishi UFJ Financial Group is now in advanced talks to buy up to a 20% stake in Shriram Finance for as much as $2.6 billion, The Economic Times reported earlier this month. Reforms are loading?Market watchers say the surge in foreign interest reflects growing confidence in both India’s regulatory stability and the Reserve Bank of India’s evolving stance on ownership.Gurmeet Chadha, Managing Partner and CIO at Complete Circle Consultants, called Blackstone’s investment in Federal Bank “an endorsement of new leadership and positive rate of change in the bank.” In a post on microblogging site X, Chadha said, “RBI is pivoting on ownership and more banking reforms are loading.”In an earlier post on October 19, Chadha wrote: “BIG Bank Reforms are getting loaded.. Emirates NBD and RBL bank deal signals a big shift in RBI thought process. Largest FDI in banks and equity infusion ever.. This and Sumitomo Yes bank deal can open global fund raising options for Indian banks which r currently very limited.. Eventually more reforms on even voting rights capped at 26%, 9.99% stake for corporate investors will also be relooked.”Chadha, who has been vocal about the changing landscape, said last week that the recent string of deals, from Emirates NBD’s Rs 26,853 crore bet on RBL Bank to Sumitomo’s stake in Yes Bank, signals “a big shift in RBI thought process.” He noted that the record inflows could “open global fund raising options for Indian banks which are currently very limited,” while hinting that long-standing limits on voting rights and corporate ownership—“capped at 26% and 9.99%”—may soon be relooked.Veteran banker Uday Kotak also welcomed the changing tide. “I welcome opening up of the banking sector to global financial institutions for majority stake,” he said in a post on X. “This, along with ensuring guardrails to manage conflict of interest, and providing a level playing field to players, will unleash capacity to serve India’s aspirations. Exciting times.”Kotak's remarks echo a broader market sentiment that India’s financial ecosystem is preparing for a new phase of liberalization, where global players can take significant ownership in domestic banks, under a more flexible regulatory regime.The cumulative inflows across Federal Bank, RBL Bank, Yes Bank, IDFC First Bank, and Sammaan Capital reflect a strong foreign appetite for Indian credit growth stories, even amid global monetary tightening. As Chadha put it, “RBI is pivoting on ownership.” The question now is: how far will it go?Also read | Federal Bank approves Rs 6,200 crore warrant issue to Blackstone; stock up 2%(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

Shares of Ashish Kacholia-backed Jain Resource Recycling surged 9% to their new 52-week high of Rs 401.30 on the BSE on Friday, October 24, extending gains for a fifth consecutive session after the company reported a strong set of numbers for the second quarter of the financial year FY26.The company’s consolidated net profit for the September quarter stood at Rs 98.6 crore, marking an impressive 88% jump from Rs 52.6 crore reported in the same quarter of the previous fiscal year. Jain’s revenue from operations also witnessed an uptick of 52% at Rs 2,113.7 crore.The company’s EBITDA or earnings before interest, tax, depreciation and amortization stood at Rs 160 crore, up 82% from Rs 88 crore. Margins also rose 127 basis points to 7.6% for the quarter under review.As for segmental revenue for the first half of FY26, the Aluminium and Alloys business witnessed a massive rise of 115% to Rs 154.5 crore, while Lead and Ingots business garnered a revenue of Rs 1,740 crore, up 47% from the same period last year. Copper Ingots clocked a revenue growth of 14% to Rs 1,697.8.Jain Resource Recycling is a recent debutant in the primary market as shares got listed on October 1. Jain Resource Recycling listed at a 14% premium over the IPO price. The stock is up 51% from its issue price of Rs 232 per share.Ace investor Ashish Kacholia holds a 1.1% stake in the company. Jain Resource Recycling is engaged in recycling and manufacturing non-ferrous metals such as lead, copper and aluminium. The company operates three recycling facilities near Chennai and also has a gold refining unit in the UAE through a subsidiary.At about 12:40 pm, shares of the company were trading at Rs 392, higher by 6.2% from the last close on the NSE. With today’s gain the stock is up 26% in the last 5 sessions.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)