MUMBAI (Reuters) -The Indian central bank on Wednesday said it would allow banks to lend for acquisitions while easing some of the restrictions imposed on them for lending against listed shares.
The Reserve Bank of India will provide an enabling framework which will allow banks to finance acquisitions by Indian corporates, Governor Sanjay Malhotra said on Wednesday.
State Bank of India SBI.NS, the country’s largest lender by assets, had requested the banking sector regulator to allow banks to finance acquisitions.
The regulator also said a tighter excepted credit loss (ECL) framework would only kick in from 2027, with banks given a glide path to adjust to the new framework.
The Basel 3 capital framework would also come into effect from 2027, Malhotra said.
(Reporting by Khushi Malhotra, Gopika Gopakumar and Ashwin Manikandan; Editing by Ronojoy Mazumdar)
