Indian Banker Who Merged 10 Lenders Sees More on the Cards

India will probably see more bank mergers as digital technology transforms the industry and non-bank financing companies seek to avoid a cash crunch, according to a senior official at the nation’s largest lender, Bloomberg News reported. Finance firms that don’t take deposits “need a stable source of capital and banks can help with that,” said Dinesh Kumar Khara, a managing director at State Bank of India who has overseen about 10 mergers. “Banks also want to expand their liabilities and NBFCs can help with that,” he said in an interview. Khara’s remarks reflect rising speculation for more mergers after a spurt of deals between NBFCs and banks, including one struck last week between private lender Lakshmi Vilas Bank Ltd. and mortgage financier Indiabulls Housing Finance Ltd. Read more

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