State Bank of India, the country’s largest lender by assets, has requested the Reserve Bank of India to allow banks to finance acquisitions, its chairperson said on Monday.
Under current regulations, Indian banks are barred from lending for mergers and acquisitions, pushing companies to rely on non-banking financial firms or raise funds through bonds to finance such deals.
SBI Chairperson Challa Sreenivasulu Setty said at an industry event that the bank has requested the RBI to consider allowing acquisition financing, starting with large listed companies.
Reuters
