Until a while ago, this particular bank was actively considering the acquisition of an NBFC. The bet? A strong network of the target firm in the micro-lending business. The speculated valuation as well sounded attractive to the bank. Yet, we now hear that the bank’s board has shown the thumbs down to the management on all aspects of the deal. This, we hear, was communicated at a recent top level meeting held in Mumbai. Why did the board play a party spoiler? Buzz is that it found certain weak points in the NBFC’s corporate governance framework and disclosure policies. There was speculation in the market that the deal could still go through even though the concerned lender had denied talks. But, at this point, guess it is safe to assume that the deal is a non-starter.
