Reserve Bank of India lifts bank acquisition financing curbs to bolster economy

RBI lifts financing curbs to encourage bank lending for acquisitions and IPO participation, aiming to support economic growth.

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Reserve Bank of India lifts bank acquisition financing curbs to bolster economy

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Reserve Bank of India lifts bank acquisition financing curbs to bolster economy
RBI lifts financing curbs to encourage bank lending for acquisitions and IPO participation, aiming to support economic growth.
The central bank has eased restrictions on bank financing for acquisitions and allowed increased exposure to IPO-related share purchases, with limits such as 70% funding of deal value and capped debt-to-equity ratios. 
The move is designed to spur credit growth and support corporate expansions while maintaining oversight through risk weights and provisioning norms. 
The governor emphasised that banks should exercise case-specific judgment rather than rely on blanket rules.
Sentinel