India's RBI allows banks to finance takeovers up to 75%
Big update from the Reserve Bank of India (RBI): starting June 2026, banks in India can now directly fund corporate takeovers, a job that used to be mostly for private lenders.
There are some guardrails, though: banks can only finance up to 75% of the deal, and buyers need to put in their own money too.
The RBI says this is all about keeping things stable while still helping companies grow.
Standard buyouts likely see easier funding
India's overall dealmaking scene is already buzzing, with $116 billion worth of deals in 2024 alone (including M&A, private equity, venture capital, and other transactions).
With these new rules, getting funding for big company buyouts should get easier, at least for standard deals.
Private credit funds will still handle the riskier or more customized transactions.
For banks, this means stepping up their game with smarter ways to assess who they lend to, and how much risk they're taking on.