Overview

• SBI chairman C.S. Setty said the Indian Banks' Association will file a formal request asking the RBI to permit lending for acquisitions.
• Indian banks remain barred from funding takeovers, which has pushed corporates toward non-banking lenders and the bond market.
• Setty argued that legacy constraints under project-finance rules and net capital ratio norms have largely been addressed.
• Corporate funding has tilted to capital markets, with firms raising a record Rs 4.07 trillion via bonds between April and July, according to Prime Database.
• SBI estimates companies hold about Rs 13.5 trillion in cash, and Setty called on banks to prepare for long-term capital needs including startup and MSME financing.