RBI easing allows banks up to 75% takeover funding, ₹10,000cr
Business
Since July, Indian banks have pumped over ₹10,000 crore into mergers and acquisitions, thanks to the RBI making it easier for them to fund up to 75% of takeover costs.
State Bank of India is one of the most active participants, with HDFC Bank, Kotak Mahindra Bank, and ICICI Bank (and even global names like HSBC and Citibank) jumping in too.
This move has opened doors for both listed and unlisted companies that usually relied on foreign banks.
Deals suggest nearly ₹2L cr market
Big deals are already happening, like Crystal Crop Protection buying FMC Corporation's India business. The market could be worth nearly ₹2 lakh crore.
For banks, it's a chance to boost their investment banking game and earn more through managing escrow accounts and share transactions.