Chennai, Oct. 5 -- The Reserve Bank of India's (RBI) green signal to banks to fund mergers and acquisitions (M&A) has the potential to open the doors for about $40 billion or Rs 3.5 lakh crore business, states Bank of Baroda in a report.
Clearly, this adds a fresh dimension to the scope of banking in India and comes at a time when this activity has hitherto been funded by non-banking sources.
Also, given the pace of M & A activity in the country, the growth potential is significant.
Given that the RBI has also rolled back the 2016 regulation on large exposures for banks, the scope to fund M & A involving large corporates opens further, the report adds.
According to the report, with this avenue opening for banks, there is an opportunity....