Mitsubishi UFJ Financial Group Inc. is reportedly close to acquiring a minority stake in India’s Shriram Finance Ltd., Bloomberg reported, signaling the latest move by a global bank to deepen its presence in the Indian market. People familiar with the matter said MUFG may invest more than ¥500 billion ($3.2 billion) for around a 20% stake, with talks advanced and an agreement possibly reached as soon as this week, though the terms could still change.
Shriram Finance, which operates across urban and rural India, provides loans for commercial vehicles, tractors, passenger cars, and small and medium-sized enterprises. The company’s shares have surged almost 50% this year, giving the Mumbai-based firm a market value near $18 billion. Negotiations are ongoing and could face delays or even collapse, according to sources. MUFG declined to comment, and Shriram did not immediately respond to requests for comment.
Japan’s largest banks are increasingly investing in Indian financial institutions, betting on long-term growth. Sumitomo Mitsui Financial Group Inc. became the largest shareholder of Yes Bank Ltd. earlier this year and has been expanding lending operations and staffing in India, deploying nearly $5 billion. MUFG’s potential investment continues this trend, as global banks seek footholds amid US credit market jitters.
