JP Morgan eyes bigger M&A role after RBI relaxes local funding

JP Morgan is positioning itself for a larger role in merger and acquisition financing after the Reserve Bank of India allowed domestic banks to fund M&A activity, the Times of India reports. The relaxation comes as Indian corporates shift borrowing back to banks from capital markets, mirroring a global trend.

Kerwin Clayton, JP Morgan's APAC head of corporate banking, said the bank can now offer both onshore and offshore financing options, including INR-denominated loans, external commercial borrowing in dollars, or FPI structures. He said having all structural options under one firm is a distinct advantage. Indian corporate leverage is healthy, and capital markets remain deep and corporate-friendly, he added.

India's roughly 7 percent growth, rising overseas expansion, and manufacturing capex are driving corporate banking opportunities. JP Morgan is seeing growth across multinationals, large-caps, mid-caps, and the innovation economy. Clayton noted that mid-cap M&A activity is healthy as companies gain confidence in international markets.