Japan’s MUFG to buy 20% stake in Shriram Finance for $4.4 billion
1 min readMUFG of Japan will acquire a 20% stake in Shriram Finance for $4.4 billion, the non-bank lender confirmed on Friday. This transaction represents the largest cross-border investment in India’s financial sector to date.
The financial sector has recorded nearly $15 billion in deals this year according to Dealogic data, more than double the $6.5 billion total reached in 2024.
This agreement follows Emirates NBD Bank’s $3 billion investment for a 60% stake in India’s RBL Bank last November, which previously stood as the largest foreign bank investment in the sector.
Facing a contracting domestic market and persistently low interest rates, Japan’s major banks have increasingly pursued overseas opportunities. India’s rapidly expanding economy has emerged as a favored investment destination.
Competitor Sumitomo Mitsui Banking Corporation entered the Indian market earlier this year with a $1.6 billion investment for 20% of Yes Bank in May, later increasing its holding to 24.2%.
Published on December 19, 2025
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