MUFG Bank enters into investment agreement with Shriram Finance
FinTech BizNews Service
Mumbai, 19 December 2025: MUFG Bank, Ltd. (President & CEO: Junichi Hanzawa, hereinafter referred to as “MUFG Bank”), a consolidated subsidiary of Mitsubishi UFJ Financial Group, Inc. (President & Group CEO: Hironori Kamezawa, hereinafter referred to as “MUFG”), today announced that MUFG Bank has entered into an investment agreement with Shriram Finance Limited (hereinafter referred to as “Shriram Finance”), a leading non-banking financial company (“NBFC”) in India, and its major shareholders, Shriram Ownership Trust and Shriram Capital Private Limited, to subscribe to a preferential allotment of a 20% equity shares in Shriram Finance (the “Investment”). The total investment amount is expected to be approximately INR 396.2 billion (approximately JPY 682.3 billion, USDINR = 90, USDJPY = 155), and the completion of this investment is subject to approvals from relevant regulatory authorities. Upon completion of the Investment, Shriram Finance will become an equity method affiliate of both MUFG and MUFG Bank, and MUFG plans to appoint two directors to the board of Shriram Finance.
In addition, MUFG Bank has entered into a Memorandum of Understanding regarding a strategic partnership (the “Proposed Alliance”) with Shriram Finance, aiming to accelerate the growth of Shriram Finance through collaboration between the two companies.
Asia is MUFG’s second home market, and within the region, India stands out as one of the most important market globally, expected to become the world’s third largest economy by 2030. MUFG’s journey in India began in 1894 with the setup of the Mumbai branch of Yokohama Specie Bank, a predecessor of The Bank of Tokyo. MUFG now covers all of India through six locations, delivering comprehensive banking services to corporate clients, including deposits, loans, and domestic and foreign exchange transactions. Strengthening this presence, MUFG became the first Japanese bank to open a branch in GIFT City, enabling us to support international transactions and meet diverse funding needs for clients. Reinforcing its commitment to India’s growth story, MUFG launched the $300 million Ganesha Fund in 2022 to support the growth of startups, and in 2023, invested in DMI Finance Private Limited, a non-banking provider of digital financial services in India, to further strengthen the retail digital lending space.
Shriram Finance is the second largest retail NBFC in India in terms of loan balance, with a strong brand and credibility, an experienced and capable management team, a sound business foundation, and high profitability. With approximately 3,200 branches mainly in rural and semi-urban areas, Shriram Finance has a nationwide network across India and focuses on commercial and passenger vehicle loans, with a particularly strong presence in the used vehicle loan market.
This Investment is a strategic step for MUFG to establish a business foundation in India’s MSME[5] and retail markets and capture the country’s growing domestic demand. By providing growth capital to Shriram Finance, we will help drive expansion in segments such as new commercial vehicles and MSME, while enhancing funding capacity and profitability through improved creditworthiness.
Through the Proposed Alliance, by combining MUFG’s broad client network and know-how built through managing partner banks with Shriram Finance’s strong local presence and long standing customer relationships, we aim to support the development of India’s road transport infrastructure and logistics value chain, as well as contribute to advancing financial inclusion which is an important policy agenda in India.
