ENA Sectors 2025-12-19 13:14:47 <p><span style="font-size:14px"><strong>Mumbai, Dec 19 (KNN) </strong>Japan's MUFG Bank has decided to acquire a 20% stake in Shriram Finance Ltd (SFL) for Rs 39,618 crore (US$4.4 billion), marking the largest foreign direct investment (FDI) in a financial service company in India.</span></p> <p><span style="font-size:14px">In a press release on Friday, Shriram Finance said that its board of directors has approved the definitive agreement with MUFG Bank for the proposed investment by the Japanese lender.</span></p> <p><span style="font-size:14px">Shriram Finance said that the deal has reinforced confidence in Indias lending and financial services sector fundamentals and future growth potential. Also, it strengthens Shriram Finance's capital base.</span></p> <p><span style="font-size:14px">Terming the deal as a landmark transaction, Shriram Finance said it underscores the company's status as Indias second largest retail Non Banking Financial Company (NBFC) in terms of assets under management and represents a significant milestone for the Indian financial services industry.</span></p> <p><span style="font-size:14px"> The proposed minority investment by MUFG Bank is subject to shareholder approval, regulatory clearances and customary closing conditions, Shriram Finance said.</span></p> <p><span style="font-size:14px">While Shriram Finance is Indias second largest retail NBFC with Assets Under Management (AUM) of over Rs 2.81 lakh crore, MUFG Bank is Japans premier bank, with a global network spanning around 50 countries.</span></p> <p><span style="font-size:14px">Shriram Finance said that the deal with MUFG Bank combines its established domestic franchise and extensive distribution network with the Japanese bank's global expertise and financial strength.</span></p> <p><span style="font-size:14px"> The fund infusion will significantly enhance SFLs capital adequacy, strengthen its balance sheet, and provide long-term growth capital, it said.</span></p> <p><span style="font-size:14px">Commenting on the deal, Umesh Revankar, Executive Vice Chairman, Shriram Finance said that the transaction marks a defining moment in the company's growth journey.</span></p> <p><span style="font-size:14px"> MUFG is one of the largest financial institutions, with an extensive international network and strong values rooted in substantial growth and financial inclusion. The entry of MUFG as a key investor reinforces global confidence in Indias financial services sector and our role as a leader within it, he said.</span></p> <p><span style="font-size:14px">Hironori Kamezawa, Group Chief Executive Officer, Mitsubishi UFJ Financial Group stated, MUFG and Shriram Finance share a common vision and aligned values for the future. Leveraging our global capabilities, MUFG is committed to supporting Shriram Finances growth and contributing to economic development, communities, and society in India.</span></p> <p><span style="font-size:14px">Mitsubishi UFJ Financial Group (MUFG) is the parent entity of MUFG Bank.</span></p> <p><span style="font-size:14px"><strong><em>(KNN Bureau)</em></strong></span></p> 44479 https://knnindia.co.in/news/newsdetails/sectors/japans-mufg-bank-buys-20-stake-in-shriram-finance-for-rs-39618-crore 2025-12-19 13:14:47 knnindia.co.in