State Bank of India in talks with Japanese lenders for acquisition financing: C. S. Setty

Mumbai: State Bank of India (SBI) is in discussions with Japanese financial institutions to explore acquisition financing opportunities, SBI Chairman C. S. Setty said, signalling the lender’s intent to strengthen cross-border funding partnerships.

Speaking on the sidelines of a banking event, Setty indicated that SBI is engaging with leading Japanese banks and financial entities to facilitate funding for Indian companies pursuing overseas acquisitions, particularly in sectors such as infrastructure, manufacturing, renewable energy and technology.

Focus on overseas expansion

According to Setty, Indian corporates are increasingly looking at global expansion through acquisitions, especially in developed markets. Collaborating with Japanese lenders could provide access to competitive funding costs and diversified capital sources.

He noted that Japan remains a key strategic partner for India, with strong economic ties and growing bilateral investment flows. Structured financing arrangements with Japanese institutions may help Indian firms secure long-term, low-cost capital for large-ticket deals.

Strengthening global partnerships

SBI, India’s largest public sector bank, already has an international presence and correspondent banking relationships across major financial centres. The proposed discussions with Japanese lenders are aimed at enhancing syndicated loan capabilities and co-financing structures for mergers and acquisitions (M&A).

Industry observers say such partnerships could benefit sectors where Japanese investors already have strong interest in India, including automotive, electronics, green energy and supply chain infrastructure.

Banking sector outlook

Setty also highlighted improving credit demand in India, driven by infrastructure spending, private sector capital expenditure and robust economic growth. He emphasised that SBI is well-capitalised to support both domestic and overseas funding requirements of Indian companies.

The talks are currently at a preliminary stage, and specific deal structures or timelines have not been disclosed.

If materialised, the collaboration could deepen Indo-Japanese financial cooperation while strengthening SBI’s role in facilitating global ambitions of Indian corporates.