Japan’s MUFG to invest $4.45 billion on Shriram Finance in biggest FDI in Indian financial services - The Economic Times
Japan’s leading financial group, Mitsubishi UFJ Financial Group (MUFG), has announced a large investment plan in Shriram Finance, marking the biggest foreign direct investment ever made in India’s financial services sector. The deal involves MUFG investing approximately $4.45 billion to acquire a significant stake in the Indian non-banking financial company. This strategic move highlights growing global confidence in India’s financial market and long-term economic potential. Shriram Finance, known for its strong presence in retail lending, vehicle finance, and small business loans, is expected to benefit from MUFG’s global expertise, capital strength, and advanced risk management practices. The investment will help Shriram expand its lending portfolio, strengthen digital capabilities, and improve access to affordable credit across India. For MUFG, the partnership offers a major foothold in India’s fast-growing financial services industry, aligning with its broader Asia expansion strategy and long-term growth goals.
The Key points
- MUFG plans to invest $4.45 billion in Shriram Finance
- It becomes the largest FDI deal in Indian financial services
- MUFG will acquire a significant minority stake
- The deal boosts foreign investor confidence in India
- Shriram Finance focuses on retail and MSME lending
- Investment supports business expansion and digital growth
- MUFG brings global banking expertise and capital strength
- The partnership enhances risk management and governance
- India remains a key market in MUFG’s Asia strategy
- The deal strengthens India-Japan financial cooperation
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