SBI Eyes Foreign Bank Collaborations for Acquisition Finance Boost

State Bank of India (SBI), the country's largest lender, is open to partnering with foreign banks for acquisition finance following potential regulatory changes. Chairman CS Setty highlighted SBI's expertise and intent to leverage its in-house capabilities like SBI Capital Markets to enhance its position in the domestic and outbound finance markets.

The State Bank of India (SBI), the nation's largest lender, is poised to collaborate with foreign banks for acquisition financing once regulatory changes permit, according to its Chairman CS Setty.

Setty acknowledged the prowess of multinational banks in acquisition financing, expressing SBI's willingness to collaborate with them. SBI's experience in outbound acquisitions and in-house expertise, including its investment banking unit SBI Capital Markets, fortifies its position. The bank is yet to finalize its stance on the Reserve Bank of India's (RBI) new move to allow such financing.

SBI is concerned about the proposed cap on lending for mergers and acquisition financing, and plans to address this through the Indian Banks Association. Meanwhile, the bank will launch a revamped version of its mobile app Yono by December, aiming to double its mobile banking users to 20 crore.

(With inputs from agencies.)