NEW DELHI: Japan’s Mitsubishi UFJ Financial Group Inc (MUFG) will acquire a minority stake of 20 per cent in non-bank lender Shriram Finance Ltd for Rs 39,618 crore (around $4.4 billion), marking the largest cross-border investment in India’s financial sector to date.
MUFG will pick up the minority stake through preferential equity shares, Shriram Finance said in a statement.
The signing of definitive agreements with MUFG Bank reinforces confidence in India’s lending and financial services sector fundamentals and future growth potential, the statement said, adding that it will also strengthen SFL’s capital base and accelerate its growth, it said.
The partnership will also improve access to low-cost liabilities and potentially strengthen SFL’s credit ratings, while aligning governance and operational practices with global best standards, it added. This investment reflects MUFG Bank’s confidence in India’s dynamic financial services sector, it said, adding the investment in SFL will be MUFG’s largest investment in India.
Mitsubishi UFJ Financial Group (MUFG), MUFG Bank’s parent entity, has a legacy of over 130 years in India, having invested USD 1.7 billion and created approximately 5,000 jobs.
SFL executive vice chairman Umesh Revankar said, “MUFG is one of the largest financial institutions, with an extensive international network and strong values rooted in substantial growth and financial inclusion. The entry of MUFG as a key investor reinforces global confidence in India’s financial services sector and our role as a leader within it. “
Upon completion of the investment, Shriram Finance will become an equity-method affiliate of both MUFG and MUFG Bank, and MUFG plans to appoint two directors to Shriram Finance’s board.
MUFG Group CEO Hironori Kamezawa said, “Shriram Finance shares a common vision and aligned values for the future. Leveraging our global capabilities, MUFG is committed to supporting Shriram Finance’s growth and contributing to economic development, communities, and society in India. “
Asia is MUFG’s second home market, and within the region, India
stands out as one of the most important markets globally, expected to become the world’s third-largest economy by 2030. MUFG’s journey in India began in 1894 with the setup of the Mumbai branch of Yokohama Specie Bank, a predecessor of The Bank of Tokyo.
MUFG now covers all of India through six locations, delivering comprehensive banking services to corporate clients, including deposits, loans, and domestic and foreign exchange transactions.
Strengthening this presence, MUFG became the first Japanese bank to open a branch in GIFT City, enabling us to support international transactions and meet diverse funding needs for clients.
Reinforcing its commitment to India’s growth story, MUFG launched the USD 300 million Ganesha Fund in 2022 to support the growth of startups and, in 2023, invested in DMI Finance Private Ltd, a non-banking financial institution providing digital financial services in India, to further strengthen the retail digital lending space.
Earlier in October, Emirates NBD Bank, the second-largest in the UAE, expressed interest in acquiring a majority stake of 60 per cent in RBL Bank for Rs 26,853 crore.
Meanwhile, another Shriram Group firm, Shriram Capital Private Ltd (SCPL), said the SCPL’s board, in its meeting held on December 18, 2025, recorded, on an in-principle basis, its intent to explore and evaluate certain restructuring options relating to the separation or reorganisation of the lending/credit business.
The aforesaid possible restructuring is only at a preliminary and exploratory stage, it said.
MUFG now covers India through six locations, delivering comprehensive banking services to corporate clients
First Japanese bank to open a branch in GIFT City, enabling it to support international transactions and meet diverse funding needs for clients
Launched $300 mn Ganesha Fund in 2022 to support startups
In 2023, invested in DMI Finance Private Ltd, a non-banking financial institution providing digital financial services in India