MUMBAI, Dec 19 (Reuters) – Japan’s MUFG (8306.T), opens new tab will pick up a 20% stake in Shriram Finance (SHMF.NS), opens new tab for $4.4 billion, the Indian non-bank lender said on Friday, marking the largest cross-border investment in the India’s financial sector.
The sector has struck deals worth nearly $15 billion so far this year, according to Dealogic data, more than double the $6.5 billion achieved in 2024.
Sign up here.
The deal comes close on the heels of Emirates NBD Bank’s (ENBD.DU), opens new tab $3 billion investment for a 60% stake in Indian private lender RBL Bank in November, which was then the largest investment in the sector by a foreign bank.
For years, Japan’s biggest banks have sought out overseas targets in the face of a shrinking domestic market and rock-bottom interest rates, with India becoming a popular destination due to its fast-growing economy.
Rival Sumitomo Mitsui Banking Corporation (8316.T), opens new tab bought a 24.2% stake in Indian lender Yes Bank (YESB.NS), opens new tab, starting with a 20% stake for $1.6 billion in May.
Reporting by Gopika Gopakumar in Mumbai, Nandan Mandayam and Urvi Dugar in Bengaluru; Editing by Sonia Cheema
Japan’s MUFG to buy 20% stake in India’s Shriram Finance for $4.4 billion
