Indian banks must be able to finance brands and takeovers, says SBI chairman Setty

SBI chairman Challa Sreenivasulu Setty

As the volume of merger and acquisition (M&A) allows in its own country, the supervisor must allow to allow Indian banks to finance such transactions, said State Bank of India (SBI) Chairman CS Setty during the FIBAC event that is held here on Monday.

“For some time we have asked access for Indian banks to finance M & AS,” he said, adding that lenders have been attractive through the Banks lobbying group to at least consider financing M&A deals of listed companies where there is more transparency.

Setty said that the financing of late company financing has shifted to capital markets and private credit. But there are financial requirements in the long term, so banks will have to perform for the next wave of long-term capex, which is essential for the growth ambition of India.

“Deleveraging has taken place in the business sector, and companies now have considerable greenhouse baldi. Our internal estimates have cash availability at £ 13.5 trillion, which means that Capex extension, brownfield investments, continuous capex, most are helped through internal resources. Although many companies have capital, this cannot be accessed, this can not access, this cannot access, this can access, do not access it, this can access, do not access it, or this is accessed, or this is accessed, Robust internal funds. ” he said.

Private credit

According to a report from E&Y, the private credit market of India saw a strong increase in deal activity. The total private credit deployment hit $ 9 billion over 79 deals (dealer above $ 10 million) in H12025, an increase of 53 percent compared to H12024 and almost 3x of H22024 levels.

A single historic deal – Shapoorji Pallonji Group’s transaction of $ 3.14 billion – has made a huge percentage of the total deal amount. Exclusively this, reflected Dealstroom still a healthy momentum, driven by stable interest rate expectations and gaps left by benches in sectors such as infrastructure and real estate. Worldwide funds remained the dominant players on the private credit market, while domestic funds focused on medium -sized and opportunistic deals.

The infrastructure sector received the highest allocation of the private credit funds followed by the Real Estate and Healthcare sectors. The loans from banks to the large companies have risen by only 6 percent in the last two years by only 6 percent, according to the report.

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Published on August 25, 2025