CORPORATE
MUFG Bank to acquire 20% in Shriram Finance for Rs 39,618 crore
- IBJ Bureau
- Dec 20, 2025
Japan’s MUFG will acquire a 20 per cent stake in non-bank lender Shriram Finance for Rs 39,618 crore, the companies have said. The transaction makes it the largest cross-border investment in the country’s financial sector.
The deal marks MUFG’s biggest commitment in India, surpassing its $1.7 billion investments in previous years.
“There is a chance (that) we may push our stake above 50 per cent. The regulations allow for acquiring over 50 per cent. So, naturally, it is a possibility at an appropriate time,” notes Masashige Nakazono, the executive officer and head of the global commercial banking planning division of of MUFG Bank.
India’s financial sector has witnessed nearly $15 billion worth of deals so far this year, more than double the $6.5 billion recorded in 2024, according to Dealogic data.
MUFG’s move follows Emirates NBD Bank’s $3-billion acquisition of a 60 per cent stake in private lender RBL Bank in November, the largest investment in the sector by a foreign bank until now.
The board of Shriram Finance has approved granting MUFG certain minority protection rights, including the right to nominate up to two non-independent directors on its board and pre-emptive rights to maintain proportional shareholding. These rights will lapse, if MUFG’s stake falls below 10 per cent on a fully- diluted basis, the company has added.
MUFG will also have to pay a one-time non-compete and non-solicit fee of $200 million to Shriram Finance’s major shareholder Shriram Ownership Trust, subject to the non-bank lender’s shareholders’ approval.
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