SBI in talks with Japanese lenders for tie-up on acquisition finance: Chairman CS Setty

State Bank of India is in talks with Japanese lenders for a tie-up on the acquisition finance business, which the RBI recently opened for domestic lenders, said Chairman CS Setty on Friday. The country’s largest lender has the ability to fund up to Rs 94,000 crore to borrowers looking at acquisition finance, Chairman told reporters on the sidelines of an IBA event in Mumbai.

The Reserve Bank came out with the final guidelines on the acquisition finance front on February 13, allowing banks to lend up to 75 per cent of a deal and capping the overall exposure on that aspect at 20 per cent of its core capital. Setty said SBI has been working with foreign lenders on the acquisition finance side, pointing out that it was open to do the business overseas and added that the opening up the possibilities domestically has led to conversations on similar tie-ups.