Key Deals And Acquisitions in The Indian Banking Sector

These are the key deals in the Indian banking sector in the recent past, according to data culled from the India Brand Equity Foundation.

• RBL Bank Limited, an Indian private sector bank, has raised Rs 330 crore ($49.6 million) from a UK-based development finance institution CDC Group Plc, which will help RBL strengthen its capital base to meet future requirements.

• State Bank of India (SBI), India’s largest bank, signed an agreement with the World Bank for a Rs 4,200 crore ($625 million) credit facility, aimed at financing grid connected rooftop solar photovoltaic (GRPV) projects in India.

• JP Morgan Chase, the largest bank in United States by assets, plans to expand its operations in India by opening three new branches in Delhi, Bangalore and Chennai in addition to its existing branch in Mumbai.

• Canada Pension Plan Investment Board (CPPIB), an investment management company, has bought a large stake in Kotak Mahindra Bank Ltd from Japan-based Sumitomo Mitsui Banking Corporation.

• India’s first small finance bank called the Capital Small Finance Bank has started its operations by launching 10 branch offices in Punjab, and aims to increase the number of branches to 29.

• FreeCharge, the wallet company owned by online retailer Snapdeal, has partnered with Yes Bank and MasterCard to launch FreeCharge Go, a virtual card that allows users to pay for goods and services at online shops and offline retailers.

• Exim Bank of India and the Government of Andhra Pradesh have signed a Memorandum of Understanding (MoU) to promote exports in the state.

• Kotak Mahindra Bank Limited has bought 19.9 per cent stake in Airtel M Commerce Services Limited (AMSL) for Rs 98.38 crore ($14.43 million) to set up a payments bank. AMSL provides semi-closed prepaid instrument and offers services under the ‘Airtel Money’ brand name.

• Ujjivan Financial Services Ltd, a microfinance services company, has raised Rs 312.4 crore ($ 45.84 million) in a private placement from 33 domestic investors including mutual funds, insurance firms, family offices and High Net Worth Individuals (HNIs)).

• India's largest public sector bank, State Bank of India (SBI), has opened its first branch dedicated to serving start-up companies, in Bengaluru.

• Global rating agency Moody's has upgraded its outlook for the Indian banking system to stable from negative based on its assessment of five drivers including improvement in operating environment and stable asset risk and capital scenario.

• Lok Capital, a private equity investor backed by US-based non-profit organisation Rockefeller Foundation, plans to invest up to $15 million in two proposed small finance banks in India over the next one year.

• The Reserve Bank of India (RBI) has granted in-principle licences to 10 applicants to open small finance banks, which will help expanding access to financial services in rural and semi-urban areas.

• IDFC Bank has become the latest new bank to start operations with 23 branches, including 15 branches in rural areas of Madhya Pradesh.

• The RBI has given in-principle approval to 11 applicants to establish payment banks. These banks can accept deposits and remittances, but are not allowed to extend any loans.

• The Bank of Tokyo-Mitsubishi (BTMU), a Japanese financial services group, aims to double its branch count in India to 10 over the next three years and also target a 10 per cent credit growth during FY16.

• The RBI has allowed third-party white label automated teller machines (ATM) to accept international cards, including international prepaid cards, and said white label ATMs can now tie up with any commercial bank for cash supply.