Mid-size banks could be new M&A magnet

As a hectic year of deal-making in banking and financial services rolls to a close, experts are predicting that the mergers and acquisitions in 2026 will see mid-sized lenders and foreign capital taking centre-stage.

- Subhana Shaikh [e-mail]

Friday saw the biggest deal of the year—Mitsubishi UFJ Financial Group pouring nearly ₹40,000 crore into Shriram Finance, India’s second largest non-banking finance company, for a 20% stake—in the sector highlighting how India has emerged as a magnet for global capital chasing lenders. Strong balance sheets, regulatory support, and sustained growth prospects have made Indian banks, NBFCs, and investments banks top destination for overseas money.