State Bank of India is expanding its merger and acquisition financing capabilities through partnerships with Japanese lenders. SBI Chairman CS Setty announced the bank is in active discussions with Japanese financial institutions to collaborate on M&A financing under new regulatory guidelines. India's largest lender operates under a lending ceiling of 94,000 crore and can now finance up to 75 percent of acquisition costs in domestic M&A transactions, subject to a 3:1 debt-equity ratio. SBI will soon seek board approval for a formal policy governing these partnerships. The bank emphasizes that transaction structures will be determined case-by-case based on the specific acquirer and target company involved, rather than showing preference for particular banking partners.
