IDFC Bank is paying $1.5 bln in stock for Capital First, a fast-growing consumer lender backed by U.S. buyout firm Warburg Pincus. The buyer gets a much better retail business and a star CEO. The target gets a shortcut to obtaining the bank licence it always wanted.
The state has been stealthily reducing its role in industry by allowing private players to gain market share. There's appetite for a more aggressive approach. If national carrier Air India can be sold, look for banks, energy and other assets to follow if Modi wins a second term. This is a Breakingviews prediction for 2018. To see more of our predictions, click here.