RBI hikes banks’ M&A financing limit to 20% of tier-1 capital

RBI hikes banks’ M&A financing limit to 20% of tier-1 capital


The Reserve Bank of India (RBI) said banks can conduct acquisition financing of up to 20 per cent of their tier-1 capital, as against the proposed 10 per cent cap, in its draft guidelines. In November, businessline had reported that bankers had sought tweaks to the draft acquisition finance guidelines, including higher exposure limits, permission to fund unlisted companies’ merger and acquisition (M&A) plans and approval to finance corporates acquiring majority stakes in tranches rather than in a single go.

“The aggregate capital market exposure (CME) of a bank, on both solo and consolidated basis, shall not exceed 40 per cent of its eligible capital base. A bank’s direct capital market exposure, consisting of investment exposures, shall not exceed 20 per cent of eligible capital base, on both solo and consolidated basis. A bank’s aggregate exposure to acquisition finance shall not exceed 20 per cent of its eligible capital base, within the aggregate CME ceiling of 40 per cent, both on a solo and consolidated basis,” said the RBI.

acquisition value

Lenders can fund up to 75 per cent of the acquisition value, enabling acquisitions of both listed and unlisted entities, subject to different guidelines. Alongside the 75 per cent cap on acquisition value, the Directions require a debt-equity ratio of 3:1 on the acquiring company, along with the target company on a consolidated basis.

The acquisition shall result in the acquirer obtaining control of the target company through a single transaction, or a series of inter-connected transactions but completed within 12 months from the date of execution of the acquisition agreement.

Further, the RBI also allowed banks to lend against government securities, sovereign gold bonds, loan against shares, NCDs, mutual funds, units of ETFs and InvITS. The regulator has set 75 per cent loan to value (LTV) ratio against mutual funds, 60 per cent for loan against shares and NCDs and 85 per cent for debt mutual funds.

“The RBI has opened gates for leveraged buyouts, allowing banks to finance acquisition of control, including acquisition of substantial stake in already controlled entities by non financial acquiring companies. The directions permit acquisition of both domestic and overseas entities for up to 75 per cent of the acquisition value. With this, banks would be able to fund acquisitions directly without hiding it in the name of general corporate purposes,” said Payal Agarwal, partner, Vinod Kothari and Company.

Published on February 13, 2026



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BNP secures landslide victory; set to return to power after two decades

BNP secures landslide victory; set to return to power after two decades


The Bangladesh Nationalist Party (BNP) on Friday secured a sweeping victory with more than two-thirds majority in the landmark parliamentary elections and is making a spectacular return to power after a gap of two decades.

The 13th Parliamentary elections assumed significance as they were held after a period of tumultuous political vacuum, instability and a fragile security situation, including widespread attacks on minorities after the student-led protests brought down the 15-year rule of Sheikh Hasina in August 2024.

According to the unofficial results announced by the Election Commission (EC), the BNP has bagged 209 out of 297 seats, while right-wing Jamaat-e-Islami, known to be close to Pakistan, secured 68 seats. The Awami League party of Hasina was barred from contesting the polls, which recorded 59.44 per cent voter turnout.

The EC postponed the announcement of results in two seats – Chattogram-2 and Chattogram-4. The election in one seat was postponed due to the death of a candidate.

BNP’s top leader Tarique Rahman is set to become the prime minister for the first time. He will replace the interim government chief Nobel laureate Muhammad Yunus, under whose tenure Dhaka’s relations with New Delhi witnessed a significant downturn.

Prime Minister Narendra Modi spoke to Rahman and congratulated him on BNP’s spectacular victory.

“Delighted to speak with Mr. Tarique Rahman. I congratulated him on the remarkable victory in the Bangladesh elections,” Modi said on social media.

“I conveyed my best wishes and support in his endeavour to fulfil the aspirations of the people of Bangladesh. As two close neighbours with deep-rooted historical and cultural ties, I reaffirmed India’s continued commitment to the peace, progress, and prosperity of both our peoples,” he said.

In an earlier social media post, Modi said India will continue to stand in support of a democratic, progressive and inclusive Bangladesh.

“I look forward to working with you to strengthen our multifaceted relations and advance our common development goals,” he said.

On its part, the BNP thanked Modi for recognising the verdict of the elections and hoped that relations between the two countries would be strengthened under the new government.

“We thank Prime Minister Narendra Modi for congratulating our leader, Tarique Rahman. It is great that a democratic country is supposed to recognise the verdict of the people, and Mr Narendra Modi has done this. We thank him,” senior leader Nazrul Islam Khan said.

India-Bangladesh relations came under strain after the collapse of the Hasina-led government.

The US Embassy in Dhaka has congratulated the people of Bangladesh in advance on what it described as a successful national election, extending special recognition to BNP and Rahman for their “historic victory.”

“The US looks forward to working with you to realise shared goals of prosperity and security for both our countries,” its social media post read.

China and Pakistan also congratulated the BNP chairman on the party’s victory.

The voting for the general election was held on Thursday, along with a referendum on the implementation of a complex 84-point reform package, known as the July National Charter.

According to Election Commission Senior Secretary Akhtar Ahmed, the referendum saw a 60.26 per cent voter turnout, with the “yes” vote winning a clear majority.

The election was seen as a direct contest between the BNP and its former ally, Jamaat-e-Islami, which led an 11-party alliance.

Jamaat’s key ally, the National Citizen Party, formed by the Students Against Discrimination, which led the mass protests against Hasina in August 2024, failed to convert its initial popularity into votes and won just six seats. Islami Andolon Bangladesh won one seat, and independent candidates seven.

BNP was in power earlier between 2001 and 2006 when Jamaat was its crucial partner, with two of its leaders serving as ministers.

Meanwhile, Jamaat has raised allegations of “abnormal delays” and “result tampering,” warning that it would launch a tough movement if the public mandate were “snatched away”.

Speaking to reporters at the Election Commission building early morning, Jamaat’s assistant secretary general Ahsanul Mahboob Zubair alleged that returning officers were intentionally delaying results to favour a “particular party.”

“In the seats contested by our top leaders, results should have been declared by 8 pm or 9 pm according to the signed sheets given to polling agents,” Zubair said.

The NCP, floated with interim government chief Yunus’ blessings last year, also brought allegations of “result tampering and planned fraud” in multiple Dhaka seats in particular.

The Election Commission dismissed allegations of manipulation regarding voters’ appearances in polling centres.

Election Commissioner Brig Gen (retd) Abul Fazal Md Sanaullah on Friday said the spontaneous and massive participation of people in the election proved that ‘we are ultimately victorious as a nation.’ “We had only one commitment to the nation: to conduct a neutral election. We have tried our best to ensure that. We are deeply grateful to the people of the country, as they participated spontaneously in this massive arrangement. This has proved that we are ultimately victorious as a nation.”

More than 2,000 candidates, including several independents, were in the fray for 299 of the 300 parliamentary constituencies that went to the polls.

The Election Commission made elaborate security arrangements for the elections, deploying nearly 1 million security personnel — the largest-ever in the country’s electoral history.

Published on February 13, 2026



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HUL shares slip despite Q3 beat as analysts await growth pickup

HUL shares slip despite Q3 beat as analysts await growth pickup


Hindustan Unilever Limited delivered 6% revenue growth in Q3 FY26 with underlying volume growth of 4%, its highest in 12 quarters.
| Photo Credit:
DANISH SIDDIQUI

Hindustan Unilever Limited shares tumbled 2.44 per cent to ₹2,350.80 on NSE during Friday’s trading session, despite reporting better-than-expected third quarter results the previous day. The stock hit an intraday low of ₹2,343 with sellers dominating at 53.77 per cent against 46.23 per cent buyers.

The FMCG major delivered 6 per cent revenue growth in Q3 FY26 with underlying volume growth of 4 per cent, its highest in 12 quarters. With turnover at ₹16,235 crore and EBITDA at ₹3,788 crore, the company maintained margins within its guided range of 22.5-23.5 per cent. However, reported profit after tax of ₹6,603 crore, up 121 per cent year-on-year, was primarily driven by one-off gains from the ice cream business demerger.

Goldman Sachs maintained its Buy rating but trimmed the target price to ₹2,750 from ₹2,800, noting gradual rather than sharp recovery ahead. The brokerage highlighted HUL’s quick commerce channel growing 100 per cent year-on-year to constitute 3 per cent of sales. HSBC retained at Hold with a ₹2,650 target, cutting FY27 EPS estimates by 4 per cent citing management’s cautious growth guidance of FY27 being merely “better than FY26” without quantifying the improvement.

Jefferies retained Buy with a ₹2,850 target, appreciating the company’s ‘Unified India’ strategy focused on speed and portfolio transformation. However, it expects the stock to remain range-bound until visible growth acceleration materialises. JM Financial maintained Add rating but reduced the target to ₹2,695 from ₹2,770.

Management struck a confident note on demand recovery supported by policy measures but avoided specific growth projections. The company’s commitment to prioritise growth over margins leaves limited scope for margin expansion, making revenue acceleration critical for earnings growth and stock re-rating from current levels.

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Published on February 13, 2026



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Broker’s Call: Hindustan Unilever (Hold)

Broker’s Call: Hindustan Unilever (Hold)


Target: ₹2,450

CMP: ₹2,305.20

Hindustan Unilever (HUL) posted a 2.8 per cent year-on-year increase in revenue in Q3FY26, with underlying volumes expanding 4 per cent, reflecting broad-based traction across categories. The management indicated that demand trends have gradually improved, supported by moderating inflation, particularly in food, over recent months. The steady improvement in consumer confidence signals an early recovery in overall consumption sentiment.

EBITDA margins contracted to 23 per cent, impacted by decline in gross margins. However, the management expects sequential improvement, supported by a favourable price-cost equation, better product mix and ongoing net productivity initiatives. The management reiterated margin guidance of 22-23 per cent, while continuing to invest in the business to drive sustained growth, with a clear focus on volume-led growth and premiumisation.

HUL remains focused on driving competitive, volume-led growth through stronger brand positioning, expansion in high-growth segments and scaling of future-ready channels such as quick commerce.

The management expects a gradual recovery in the coming quarters, aided by recent GST rate reductions, which could act as a catalyst for demand recovery in the long term, along with other favourable macro policies. However, we remain cautious in the short term and prefer to adopt a wait-and-watch approach and therefore maintain our Hold rating on the stock.

Published on February 13, 2026



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Broker’s Call: Mahindra & Mahindra (Add)

Broker’s Call: Mahindra & Mahindra (Add)


Target: ₹4,289

CMP: ₹3,533.80

Mahindra & Mahindra, or M&M’s Q3FY26 standalone EBITDA rose 19 per cent year on year to ₹5,290 crore, which was in line with our estimate, but 4 per cent below Bloomberg (BB) consensus estimate. Normalised PAT rose 31 per cent to ₹4,000 crore due to higher other income and flattish depreciation. The ₹590-crore charges in respect of global farm equipment business hit reported PAT.

The management indicated that GST cut is benefiting sports utility vehicle (SUV) premiumisation and entry-level car customers. It indicated that XUV7XO launch has garnered 70 per cent of bookings for the top two variants. Improvement in the internal rate of return for commercial segments (LCV, tractor & 3W) post-GST cut is driving the company’s volume. While El Nino fears are a cause for concern, the precise timing of its landing will be key to gauge the impact on FY27F tractor demand.

We have raised sales volume estimates by 5-7 per cent for FY26F-27F to factor in new vehicle launch momentum and capacity build-up. We build in 8 per cent tractor industry volume growth for FY27F.

With current mark-to-market of investment in subsidiaries, we raise the value of subsidiaries to ₹709/share (from ₹654 earlier). The standalone entity is valued at 22x one-year forward P/E, marginally below the +1SD level to reflect concerns over rainfall, leading to a SOTP-based higher target price of ₹4,289 (₹4,157 earlier) and maintain Add rating on the stock.

Published on February 13, 2026



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Coinbase faces service disruption, halts trading for brief period

Coinbase faces service disruption, halts trading for brief period


FILE PHOTO: Smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken
| Photo Credit:
Dado Ruvic

Global cyrptocurrency exchange Coinbase late on Thursday suffered a service disruption, resulting in users being unable to buy, sell or transfer their cryptocurrencies on the platform for around 1 hour.

“We are aware that customers may be unable to buy, sell, transfer on http://Coinbase.com at this time. Our team is investigating this issue and will provide an update. Your funds are safe,” Coinbase’s support team posted on X. The issue was resolved around 1 hour later.

Separately, Coinbase CEO Brian Armstrong has reportedly sold company shares amounting to approximately $550 million over the nine-month period, reflecting a sustained programme of stake reduction.

The selling activity follows a pattern seen in prior quarters, during which Armstrong periodically trimmed his holdings in Coinbase Global Inc., the US-based cryptocurrency exchange he co-founded and currently leads. Such transactions are not uncommon among technology and crypto executives and are frequently conducted under pre-arranged trading plans pursuant to SEC Rule, which are designed to mitigate insider trading concerns.

Against a backdrop of broader global financial volatility, including pressure on technology equities and fluctuations in precious metals, market conditions remain liquidity-sensitive. In the near term, this environment could support range-bound price action or continued downside pressure until macro liquidity dynamics stabilise, experts say.

Published on February 13, 2026



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