It's time to get started, put money in deals: M&A financing opens up

Bank financing of M&As will be like any other business and only needs guardrails

Last fortnight, State Bank of India (SBI) Chairman C S Setty lifted the veil on a subject long spoken of in corporate corridors: Why can’t our banks finance mergers and acquisitions (M&As)? Change is in the air: Indian Banks’ Association (of which Setty is the chairman) is to “make a formal request” to Mint Road to make way for it. Thus far the exclusive turf of foreign banks even though its funding remains offshore — as in, it’s not on these entities rupee-book (and a few select shadow banks) — a most lucrative segment in the investment banking