Time ripe for M&A in financial services

Financial services have been a mainstay for the broader M&A markets across cycles in India

Ashok WadhwaAusang Shukla

With India recovering from a slight pause, to continue steadily on to becoming an $8-plus trillion economy by the end of the decade, we took some time to reflect on the themes that may lie ahead. From distress-driven shotgun marriages to the adrenalin-pumped world of fintech, we expect a strong mergers and acquisitions (M&A) market for financial services.  
The year 2020 has been an unpredictable year, to say the least — and for very different reasons from the rest of us. It was also so for the shareholders of Yes Bank and Lakshmi Vilas Bank, as they were taken aback with the decisive action taken by the Reserve Bank of India (RBI). For a variety of reasons, neither was able to act in time to create a private solution — either because of unforgiving investors, or due to the allure of getting a better deal. Whatever the reason, the regulator has clearly reiterated the alacrity with which they can move, when needed.  
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Dec 20 2020 | 8:40 PM IST

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