India’s move to create a banking behemoth by merging four smaller lenders with government-run State Bank of India, the nation’s largest by assets, is resonating with all sorts of investors. The cost to protect the bank’s debt has plunged to a 15-month low and its shares are up 21 percent since mid-June when it was first reported the Indian Cabinet had approved the deal. Newly-appointed Managing Director Dinesh Khara says the merger will boost the bank’s credit profile and give it cheaper access to overseas funds.

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