Banking Regulation

The Competition Commission of India has cleared a Blackstone-affiliated entity’s acquisition of warrants convertible into a 9.99% stake in Federal Bank. The approval allows Blackstone to nominate two directors once the warrants are exercised and marks a significant regulatory milestone in the private bank’s capital-raising and governance plans.

The RBI proposed new exposure norms, capping banks' direct lending to capital markets and acquisition finance at 20% of Tier-1 capital each (40% aggregate) to mitigate concentration risk and enhance financial stability.

The RBI has imposed penalties on several district central co-operative banks, including Nanded and Vijayapura, for lapses in PSL norms, capital adequacy, and governance. The 28 August 2025 orders highlight the regulator’s enforcement-driven approach and judicial deference to RBI discretion. For banking lawyers, the move signals stricter compliance expectations and reputational risks for clients in the co-operative sector.

Introduction In a significant regulatory development, the Reserve Bank of India (RBI) has issued fresh directions prohibiting all...