Indian banks open cheque books for ₹10,000 crore-plus in M&A funding after RBI rule change
State Bank of India pursued an acquisition.
· Economic Times Markets, ET Stocks
Indian banks have recently engaged in significant M&A deals after the central bank eased financing rules. State Bank of India and other lenders are now financing up to 75% of deal values. The acquisition-financing market is estimated at nearly ₹2 lakh crore due to increased demand.
The analysis
State Bank of India reported ₹10,000 crore and ₹2 lakh crore, with movement of 75% attached to those lines. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is +1.1% on the day at ₹973.70, and has returned -7.8% over three months. It sits 21% below its 52-week high. The banks sector has moved -6.0% over the same period, so State Bank of India is running 1.8 points behind its peers.
For State Bank of India, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- The company directly in focus is SBIN.
- Sector exposure: Banks.
In this story
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