Indian Banks Gear Up for M&A Finance Boom by 2026, RBI Norms Drive Shift

• Indian banks are building dedicated teams for M&A financing, driven by new RBI draft norms, aiming to capitalize on rising opportunities.
• Traditionally dominated by foreign lenders, this segment is now attracting significant domestic bank interest, with SBI Chairman CS Setty open to collaborations.
• Banks are actively scouting for talent from investment banking or training existing staff for specialized M&A skills like deal structuring and valuation.
• RBI's draft guidelines propose banks can finance up to 70% of acquisition value, capped at 10% of their Tier-I capital.
• Foreign banks like Emirates NBD are also keen, with India's M&A deal environment showing strong growth, exemplified by recent major acquisitions.

Why It Matters: Indian banks are strategically entering M&A financing, poised for growth with RBI's new framework.