ETV Bharat / business

RBI To Permit Banks To Fund Merger & Acquisition Activity By Indian Corporates

Reserve Bank of India Governor Sanjay Malhotra said the RBI will expand the scope of capital market lending by banks.

Mumbai: In a bid to improve credit flow, the Reserve Bank on Wednesday said it would provide an enabling framework for Indian banks to finance acquisitions by Indian corporates. This has been a long-pending demand of Indian banks. Recently, the State Bank of India Chairman C S Setty also made a strong case for permitting banks to provide funding for mergers and acquisitions, as done by global lenders.

"To start with, we will make a formal request from the IBA (to the RBI)... at least start with some listed companies where the acquisitions are more transparent a

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