Will a flurry of deals make the Indian banking sector healthier as it readies for a new round of consolidation? Here is the tale of two mid-sized bank deals and the ambitions of their acquirers.
Heads of SBI and PNB say funding corporate takeovers is a huge opportunity and they will need to collaborate with other peer banks to work on this as RBI opens up this lending line.
RBI’s easing of restrictions is supportive of banks and corporates growing bigger through credit flow. Bad loans and reckless M&A deals can pose risks but it’s an environment where scale makes a difference.
SBI's retail loan book (sans home) has already reached Rs 7.26 lakh crore as of October against a target of Rs 7.70 lakh crore by the end of FY26, says CGM Sukhwinder Kaur; aims higher amid spike in gold and auto loans.
Lowest rate of inflation in current series of CPI led by first full month’s impact of GST rate cuts, favourable base effect and subdued prices of vegetables and fruits; repo rate cut of 25 bps likely in RBI's December policy.
Govt reviews performance of public sector banks in key areas including financial performance, asset quality and recovery; combined net profit of PSBs at Rs 93,675 cr in H1 of FY26.
Capital infusion will support Kerala-based mid-sized bank’s move to establish national footprint and become India’s fifth-largest private sector lender.
Deposits rose year-on-year for Q2 but trailed behind credit growth. IndusInd Bank’s total business contracted while Union Bank of India has been seeing single-digit growth in loans as well as deposits for last few quarters.
RBI’s draft norms allow banks to fund acquisitions by listed Indian companies with 3-year profit record; bank’s exposure to acquisition finance capped at 10% of tier 1 capital.
