Fitch Ratings has stated that significant foreign ownership in Indian financial institutions can positively impact their credit profiles by providing long-term capital and enhancing governance standards. While foreign interest is rising, it does not guarantee stronger credit fundamentals. Transactions that enhance internal controls and risk management are more relevant than purely financial gains. Fitch noted that recent foreign investment interest indicates growing confidence in India's financial regulations and oversight. For example, Bain Capital's partial acquisition of Manappuram Finance in 2026 allows it to nominate board directors, potentially improving governance. However, the effects on credit profiles will take time and are subject to execution risks. Fitch believes that there is greater potential for foreign ownership in non-bank financial institutions (NBFIs) compared to banks due to regulatory allowances for full foreign ownership. This trend could lead to improved governance and operational synergies in the sector.