MUFG Bank to acquire 20% stake in India’s Shriram Finance for $4.3bn

Japan’s Mitsubishi UFJ Financial Group’s consolidated subsidiary MUFG Bank has signed an concern statement with India’s non-banking fiscal institution (NBFC) Shriram Finance to subscribe to a preferential allotment of 20% equity shares successful Shriram Finance.

The full investment, valued astatine astir Rs396.2bn (about $4.3bn), is taxable to regulatory approval.

The concern statement was reached betwixt MUFG Bank, Shriram Finance, and its large shareholders, Shriram Ownership Trust and Shriram Capital Private Limited.

Following completion, Shriram Finance volition go an equity method affiliate of Mitsubishi UFJ Financial Group arsenic good arsenic MUFG Bank.

MUFG said that it plans the name 2 directors to the NBFC’s board.

MUFG Bank has besides signed a memorandum of knowing regarding a strategical collaboration with Shriram Finance. The projected confederation aims to expedite Shriram Finance’s maturation via partnerships.

Established successful 1979, Shriram Finance claims to beryllium the 2nd largest retail NBFC successful India by indebtedness balance, with a nationwide web of astir 3,200 branches, chiefly successful agrarian and semi-urban regions.

The institution focuses connected commercialized and rider conveyance loans, with a “strong presence” successful the utilized conveyance indebtedness segment.

MUFG Bank’s beingness successful India dates backmost to 1894, with its predecessor, Yokohama Specie Bank, opening a subdivision successful Mumbai.

Currently, MUFG Bank operates successful six locations crossed India, offering a scope of banking services to firm clients, including loans, deposits, and overseas exchange.

By offering maturation superior to the NBFC, MUFG aims to assistance successful driving enlargement successful caller commercialized vehicles and micro, small, and mean enterprises (MSMEs) segments, portion improving backing capableness and profitability done enhanced creditworthiness.

Via the projected alliance, MUFG and Shriram Finance mean to bring unneurotic MUFG’s lawsuit web and services with Shriram Finance’s determination scope and established lawsuit base. The collaboration is expected to enactment the improvement of India’s roadworthy transport infrastructure and logistics sector, portion besides contributing to advancement successful fiscal inclusion.

In May 2025, MUFG and MUFG Bank signed a multi-year concern with Sakana AI to integrate AI into the bank’s operations.

"MUFG Bank to get 20% involvement successful India’s Shriram Finance for $4.3bn" was primitively created and published by Retail Banker International, a GlobalData owned brand.

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