Global Fintech Fest: SBI ready to support India Inc with finance for domestic acquisitions, says chairman Setty

State Bank of India (SBI) Chairman Challa Sreenivasulu Setty speaks during the Global Fintech Fest 2025, in Mumbai | Photocredit: PTI/SHAHANK Parade

Banks such as State Bank of India (SBI), who have done outgoing M&A financing for Indian companies to acquire overseas entities, are good at home in acquisition financing, said SBI chairman CS Setty on the sidelines of the Global Fintech Fest 2025.

The RBI is planning to set up a possible framework for Indian banks for domestic acquisitions by India Inc.

Currently, banks can only support overseas acquisitions of Indian companies. To improve the credit flow and to expand the scope of the capital market loans by banks, RBI Governor Sanjay Malhotra said that the Central Bank is planning to offer a possible framework for Indian banks to finance acquisitions by Indian companies.

SBI’s economic research department noted in a recent report that with reforms that facilitate resilience and improved financial data at Indian banks, with anti-fragile balance sheets, it is obvious for them to look beyond the generic banking themes and their scope of Substitute to be a foreign nbes that are also hitherto. PE/VC companies.

So, green lighting of acquisition finance promises to unlock value in the life cycle of companies in corporate financing.

“M&A Deals in FY24 were valued at more than $ 120 billion (£ 10 lakh crore). Based on the debt component of 40 percent of mergers and acquisitions and 30 percent of this could be financed by banks, this translates into a potential credit growth of £ 1,2” per the £ 1,2 of the £ 1,2 “per the EMA 1.2.2.” per £ 1.2.2 per the £ 1,2.2 per the £ 1,2.

ECL -Framework

A question about the relocation of the RBI to replace the imposed loss -based facility framework with the expected loss of credit (ECL), Setty emphasized that SBI is technologically ready in terms of models and such.

“Perhaps some adjustments are required on the basis of the final guidelines … But more importantly, the long transition time is given, we believe that there will be a limited impact on the banks of the banks,” he said.

Seller financing

Referring to credit on UPI, including Kisan credit card, underlined SBI that SBI already has the option to deliver this product.

“When a customer uses a point of sale, that Point of Sale data will be used by us to give a line to the seller …. This is called supplier financing …. and today credit card claims are being discounted. Likewise, UPI advocates are also reduced and financing is also made available,” Setty said.

Published on October 8, 2025