This article discusses equity investments of the Asian Development Bank (‘ADB’ or ‘the Bank’) in South Asia, with primary reference to India and Bhutan. It considers ADB’s financing of private sector operations, including equity investments. It also focuses on case studies of equity investments in three commercial banks, namely, Centurion Bank Limited (‘CBL’) and Global Trust Bank Limited (‘GTB’) in India, and Bhutan National Bank (‘BNB’) in Bhutan. The issues and challenges in project implementation are analysed. The salient lessons learned by the Bank in these equity investments are discussed by analysing the Bank’s project completion reports and evaluations. The participation by the International Finance Corporation, a member of the World Bank Group focused on private sector operations, in its investments in CBL, GTB and BNB is also discussed. The article concludes with lessons learned by the Bank with suggestions on how the Bank can better enhance its participation in equity investment operations in its member countries.