RBI Proposes Easing Bank Financing for Corporate Acquisitions

The Reserve Bank of India has released draft norms that would permit banks to finance corporate acquisitions, a move aimed at boosting strategic investment and consolidation. Under the proposal, listed companies with a strong financial track record could secure bank loans for up to 70% of the cost of acquiring a domestic or overseas firm. The guidelines stipulate strict eligibility, risk management, and valuation criteria to ensure responsible lending, potentially unlocking significant M&A activity in the Indian market.