New Delhi, Dec. 20 -- As a hectic year of deal-making in banking and financial services rolls to a close, experts are predicting that the mergers and acquisitions in 2026 will see mid-sized lenders and foreign capital taking centre-stage.

Friday saw the biggest deal of the year - Mitsubishi UFJ Financial Group pouring nearly Rs.40,000 crore into Shriram Finance, India's second largest non-banking finance company, for a 20% stake - in the sector highlighting how India has emerged as a magnet for global capital chasing lenders. Strong balance sheets, regulatory support, and sustained growth prospects have made Indian banks, NBFCs, and investments banks top destination for overseas money.

But as capital flows toward scale, a key question i...