The Reserve Bank of India (RBI) has approved private equity firm Blackstone's acquisition of up to a 9.99% stake in Federal Bank.

Blackstone will invest Rs 6,196.51 crore in Federal Bank through its arm Asia II Topco XIII Pte Ltd. The transaction will be through a preferential issue on a private placement basis.

The investment will be routed through a Singapore-based affiliate of Blackstone. As part of the deal, Blackstone will have the right to nominate a non-executive director to Federal Bank’s board.

The deal, agreed in October, would make Blackstone the largest shareholder in Federal Bank.

The other deals last year include Emirates NBD buying a 60% stake in RBL Bank and Sumitomo Mitsui Banking Corporation (SMBC) acquiring a 24.2% stake in Yes Bank.