Under the shadow of the American credit crisis, the Indian banking industry has become a global capital "safe haven".

Recently, several billion-dollar transactions aimed at the Indian banking sector have caught the attention of global investors, making the country's financial sector the focus of global capital - at a time when US credit losses and trade tensions are causing unease among global investors. Last weekend, the National Bank of the UAE announced plans to invest $3 billion in RBL Bank Limited, marking the largest foreign investment received by the Indian banking sector. Earlier this month, Abu Dhabi's International Holdings Company signed an agreement to invest approximately $1 billion in Sammaan Capital Limited, while a subsidiary of the Sumitomo Mitsui Financial Group agreed in May to acquire a 20% stake in Yes Bank Limited for $1.6 billion. Data shows that as global investors seek opportunities in the world's fastest-growing major economy, the total value of deals involving Indian financial service targets reached around $15 billion year to date, continuing the momentum of previous years in investing in banks, insurance, and fintech companies. This contrasts sharply with the situation in other parts of the world. Recent collapses of US companies Tricolor Holdings and First Brands Group have raised concerns about hidden credit losses in the market. India, facing a 50% tariff hit from the US (which could impact its economic growth), is trying to resolve issues with the US. Foreign buyers also lack successful precedents in this sector, which is currently dominated by well-established local institutions, and less than ten years ago was grappling with a shadow banking crisis. Independent research analyst Hermendra Hazari said, "Successful cases of foreign banks acquiring Indian banks are very limited," and do not always profit and revenue growth. The willingness of foreign investors to invest large sums of money shows their intent, but whether they can establish profitable retail businesses in the fiercely competitive Indian market remains to be seen. Currently, acquiring parties are more focused on positive factors. Indian banking institutions appear relatively insulated and stand to benefit from rapid digitization, government initiatives, and a large population that is yet to have bank accounts. Major Japanese banks have openly expressed interest in Indian assets, while well-funded companies from the Middle East and Europe are now turning their attention to the rapidly expanding middle class in this third-largest Asian economy. RBL Bank CEO R. Subramaniam Kumar said at a press briefing on Sunday, "The Indian growth story has been globally recognized." He emphasized the stability of the financial system and robust regulatory mechanisms that enhance attractiveness. In recent years, the Reserve Bank of India has strengthened the financial sector through measures aimed at promoting credit flow, encouraging lending and financing. The regulatory body has also cracked down on excessive risk-taking behavior, frequently warning shadow lenders not to chase growth at all costs, and vowing to take action if they do not strengthen risk controls. These measures were taken after a crisis erupted in the industry about seven years ago when mounting bad debts dragged down growth. This prompted the government to fundamentally reform bankruptcy laws and inject capital into state-owned banks. Indian policymakers are exploring ways to attract more foreign investment, including discussions on simplifying options for overseas investors to increase their stake in state-owned banks and allowing large companies to apply for banking licenses. Industry giants HDFC Bank and ICICI Bank recently reported earnings showing that, despite pressure on interest income, both institutions achieved better-than-expected performance through loan growth. The Nifty Bank index, covering 12 constituents, has risen by over 13% this year, reaching a record high at the close on Friday. More large transactions may follow. The government plans to sell shares of IDBI Bank Limited, expecting to earn billions of dollars in revenue. Japan's largest bank, Mitsubishi UFJ Financial Group, is actively seeking acquisition targets and reportedly in advanced negotiations to acquire a stake in Shriram Finance Limited. Vivek Ramji Jhaveri, Partner and Financial Services Leader at Grant Thornton Bharat, said, "Geopolitical risks are accelerating financial and supply chain risks, and foreign investors are looking for countries that can minimize these risks to seek alpha returns. India's primary focus on domestic demand and low global economic interconnectedness make it an attractive entry point."