A major foreign investment is set to reshape India’s financial services landscape as a leading Japanese banking group moves to deepen its presence in the country.
Japan’s Mitsubishi UFJ Financial Group has agreed to invest $4.45 billion to acquire a 20% stake in Shriram Finance. The transaction marks the largest foreign direct investment ever recorded in India’s financial services sector. The investment is part of MUFG’s long term strategy to gradually increase its stake and potentially move towards majority ownership in the future
The decision follows approval from MUFG’s board in Japan, while Shriram Finance’s board is expected to formally clear the transaction. The deal is seen as a step toward closer collaboration between the Japanese banking group and the Indian non banking financial company, strengthening global capital inflows into India’s expanding finance ecosystem.
As per the agreement, MUFG will inject primary capital directly into Shriram Finance and will not buy shares from existing shareholders. The transaction values Shriram Finance at a premium, reflecting confidence in India’s long term credit demand and the growth potential of the non banking finance sector.
Shriram Finance is among India’s largest non banking financial companies, offering credit solutions across segments such as commercial vehicles, personal loans, and other financing products. The capital infusion is expected to strengthen the company’s balance sheet and support its future growth plans.
The record investment also comes amid regulatory clarity that allows banks to hold equity stakes in non banking financial companies. This policy environment has helped accelerate large strategic transactions in the sector. Market sentiment around the deal has been positive, with Shriram Finance’s stock seeing a sharp rise amid strong performance and anticipation of the investment.
MUFG’s move highlights rising interest from Japanese financial institutions in India, as they seek faster growth opportunities beyond their domestic markets. The investment underscores India’s growing importance as a key destination for global financial capital.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
