ReferIndia News M&A funding norms open up a $15-b opportunity for banks

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M&A funding norms open up a $15-b opportunity for banks

Published on: Feb. 19, 2026, 5:57 a.m. | Source: The Economic Times

New Reserve Bank of India guidelines liberalize merger and acquisition financing, allowing Indian banks to fund up to 75% of acquisition costs with a 3:1 debt-equity ratio. This unlocks a potential $10-15 billion annual opportunity for domestic lenders, previously dominated by offshore entities, fostering a new, high-value asset class.

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