Bank of Baroda and Mizuho Bank, the banking arm of Japan’s Mizuho Financial Group, have entered into a strategic partnership to jointly pursue mergers and acquisitions financing, structured lending, and cross-border corporate banking services. The agreement was signed in Mumbai on June 30, 2026, marking a significant step in India-Japan banking collaboration at a time when Indian companies are increasingly pursuing domestic and cross-border consolidation.
What the Agreement Covers
Under the partnership, the two banks will collaborate on a wide range of acquisition finance transactions. These include joint origination, structuring, co-underwriting, and syndication of deals. The agreement also covers selected M&A advisory assignments, secondary risk distribution arrangements through preferred-partner channels, and ancillary banking services such as foreign exchange hedging, interest rate hedging, and escrow services.
The partnership includes a knowledge-sharing and capacity-building component. The two banks will exchange best practices in acquisition finance underwriting, transaction structuring, and inter-creditor arrangements. This will help strengthen the capabilities of both institutions in handling complex cross-border M&A transactions.
Why This Partnership Matters Now
The timing of the agreement is closely tied to two major developments: the Reserve Bank of India’s landmark liberalisation of acquisition finance rules and a broader wave of corporate consolidation across Indian industry.
RBI’s New Acquisition Finance Framework
In February 2026, the RBI issued the (Commercial Banks - Credit Facilities) Amendment Directions, 2026, which for the first time permitted Indian commercial banks to extend acquisition finance for strategic investments. The new rules, effective from April 1, 2026, allow banks to fund up to 75% of the acquisition value, with the acquirer required to contribute at least 25% from its own funds. Eligible companies must have a minimum net worth of Rs 500 crore and a profit track record of three consecutive years.
This regulatory shift ended a decades-old prohibition on Indian banks financing equity acquisitions. Previously, companies had to rely on non-banking financial companies, private credit funds, or expensive offshore debt for M&A funding. The new framework is expected to unlock significant domestic capital for corporate deal-making and bring India closer to global banking norms.
Rising Corporate Consolidation
Lalit Tyagi, Executive Director of Bank of Baroda, noted that the partnership comes at a time when Indian companies are pursuing mergers and strategic investments driven by infrastructure growth, digital transformation, and energy transition initiatives. Sectors such as manufacturing, technology, financial services, and energy are seeing heightened consolidation as companies seek greater scale and competitiveness.
About Bank of Baroda
Bank of Baroda is the second largest public sector bank in India, after State Bank of India. It was founded on July 20, 1908, by Maharaja Sayajirao Gaekwad III in the princely state of Baroda (now Vadodara, Gujarat). The bank was nationalised in 1969 along with 13 other major commercial banks. The Government of India holds a 63.97% stake in the bank.
With over 8,400 branches and 10,000+ ATMs across India, Bank of Baroda serves customers in more than 15 countries through physical and digital channels. Its tagline is “India’s International Bank”. The bank’s Managing Director and CEO is Debadatta Chand. In 2019, Bank of Baroda was at the centre of India’s first three-way merger of public sector banks, when Dena Bank and Vijaya Bank were merged into it.
About Mizuho Bank
Mizuho Bank is the core banking unit of Mizuho Financial Group, one of Japan’s three largest financial institutions, collectively known as the Japanese megabanks, alongside MUFG and SMBC. The group was formed in 2002 through the merger of three historic Japanese banks: Dai-Ichi Kangyo Bank, Fuji Bank, and the Industrial Bank of Japan. Mizuho’s roots trace back to 1873, when Shibusawa Eiichi established Dai-Ichi Bank, the first modern bank in Japan.
Headquartered in Otemachi, Tokyo, Mizuho Financial Group has total assets of approximately $1.9 trillion and revenue exceeding $59 billion. The group operates over 505 branches across Japan and 110 offices in 40 countries worldwide. It serves over 90% of Fortune Global 200 companies.
Mizuho has maintained a presence in India for around three decades. It currently operates five branches across Indian cities and a unit in the Gujarat International Finance Tec-City (GIFT City). In December 2025, Mizuho Securities, the group’s investment banking arm, agreed to acquire a majority stake in Indian investment bank Avendus Capital for approximately $523 million, signalling the group’s deepening commitment to India’s capital markets.
Piyush Agarwal, Senior Managing Director and India Co-country Head of Mizuho Bank, described India as a key strategic market for the Japanese financial group’s long-term international growth.
Key Takeaways
- Bank of Baroda and Mizuho Bank signed a strategic partnership on June 30, 2026 in Mumbai for M&A financing and cross-border corporate banking.
- The partnership covers acquisition finance, joint origination, co-underwriting, syndication, M&A advisory, foreign exchange hedging, and escrow services.
- The agreement follows the RBI’s February 2026 landmark reform allowing commercial banks to fund up to 75% of acquisition value, effective from April 1, 2026.
- Bank of Baroda was founded in 1908 by Maharaja Sayajirao Gaekwad III and is India’s second largest public sector bank, headquartered in Vadodara, Gujarat.
- Mizuho Financial Group was formed in 2002 through the merger of three historic Japanese banks and is one of Japan’s three megabanks, with roots tracing back to 1873.
- Mizuho has operated in India for three decades with five branches and a GIFT City unit, and its securities arm acquired a majority stake in Avendus Capital for $523 million in December 2025.
