SBI Explores Japanese Banks Tie Ups For M&A Financing Under New Norms

State Bank of India is evaluating partnerships with Japanese financial institutions to strengthen its position in merger and acquisition financing. The discussions come after revised norms expanded the scope for banks to support domestic takeover transactions. 

Chairman CS Setty said the country’s largest lender is examining collaboration models as deal activity gains momentum under the updated framework. 

Talks With Japanese Lenders 

SBI has initiated conversations primarily with Japanese banks, which have shown active participation in cross border and acquisition financing. However, the bank clarified that there is no exclusive alignment with any specific institution. 

According to Setty, the composition of lenders in any transaction will depend on the acquiring company, the target company and existing banking relationships. Each deal is expected to bring together a different group of financiers based on structure and exposure. 

SBI currently has a lending ceiling of ₹94,000 crore under the new norms. The bank is expected to seek board approval shortly to formalise an internal policy governing M&A financing. 

New Financing Framework for Domestic Deals 

Under the recently announced guidelines, Indian banks can finance up to 75% of the acquisition cost in domestic M&A transactions, subject to a 3:1 debt equity ratio. 

The revised structure significantly expands the role of banks in funding corporate consolidation, potentially accelerating deal flow across sectors. 

Read More: SBI Mutual Fund Launches SBI Nifty Midcap150 Momentum 50 ETF; NFO Open till February 24, 2026! 

SBI Share Price Performance  

As of 23 February 2026, at 10:01 AM, State Bank of India share price is trading at ₹1,228.70 per share, reflecting a gain of 1.04% from the previous closing price. Over the past month, the stock has gained by 19.35%. 

Conclusion 

SBI’s outreach to Japanese lenders signals a strategic move to build capacity in structured acquisition financing. With a ₹94,000 crore lending headroom and expanded regulatory flexibility, the bank is positioning itself to play a larger role in India’s evolving M&A landscape. 

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