Landmark FDI: MUFG Bank to Invest ₹39,618 Crore in Shriram Finance for 20% Stake..

Varahi media.com online news,New Delhi, December 19, 2025: In a historic move for the Indian financial services sector, Shriram Finance Limited (SFL) today announced that its Board of Directors has approved a definitive agreement with Japan’s MUFG Bank Ltd. for a massive investment of ₹39,618 crore (approximately USD 4.4 billion).

The investment, to be executed through a preferential issuance of equity shares, will see MUFG Bank acquiring a 20.0% stake in SFL on a fully diluted basis. This transaction stands as the largest Foreign Direct Investment (FDI) ever in a financial services company in India.

Strategic Significance and Market Impact
Shriram Finance is currently India’s second-largest retail Non-Banking Financial Company (NBFC). This capital infusion is expected to redefine the company’s growth trajectory by:

Strengthening Capital Adequacy: Providing long-term growth capital to enhance the balance sheet.

Lowering Liability Costs: Improving access to low-cost international funding.

Global Governance: Aligning operational practices with international best standards, potentially leading to a credit rating upgrade.

Technological Synergy: Unlocking new avenues in digital innovation and customer engagement.

A Century of Partnership
MUFG Bank’s parent entity, Mitsubishi UFJ Financial Group, has a legacy in India spanning over 130 years. While the group has already invested USD 1.7 billion in the country, this ₹39,618 crore commitment marks its largest single investment in India to date.

దివంగత పారిశ్రామిక దిగ్గజం జీపీ హిందూజాకు ఘన నివాళి: ముంబైలో ప్రార్థనా సమావేశం..

Hironori Kamezawa, Group CEO of MUFG, stated: “MUFG is proud to become a strategic partner of Shriram Finance. We share a common vision for the future, and we are committed to supporting SFL’s growth while contributing to India’s economic development.”

Umesh Revankar, Executive Vice Chairman of SFL, added: “This is a defining moment. MUFG’s entry reinforces global confidence in India’s financial sector. Together, we aim to build a future-ready institution anchored in trust and financial inclusion.”Landmark FDI: MUFG Bank to Invest ₹39,618 Crore in Shriram Finance for 20% Stake..

Varahi media.com online news,New Delhi, December 19, 2025: In a historic move for the Indian financial services sector, Shriram Finance Limited (SFL) today announced that its Board of Directors has approved a definitive agreement with Japan’s MUFG Bank Ltd. for a massive investment of ₹39,618 crore (approximately USD 4.4 billion).

The investment, to be executed through a preferential issuance of equity shares, will see MUFG Bank acquiring a 20.0% stake in SFL on a fully diluted basis. This transaction stands as the largest Foreign Direct Investment (FDI) ever in a financial services company in India.

Strategic Significance and Market Impact
Shriram Finance is currently India’s second-largest retail Non-Banking Financial Company (NBFC). This capital infusion is expected to redefine the company’s growth trajectory by:

Strengthening Capital Adequacy: Providing long-term growth capital to enhance the balance sheet.

Lowering Liability Costs: Improving access to low-cost international funding.

Global Governance: Aligning operational practices with international best standards, potentially leading to a credit rating upgrade.

Technological Synergy: Unlocking new avenues in digital innovation and customer engagement.

MUFG Bank’s parent entity, Mitsubishi UFJ Financial Group, has a legacy in India spanning over 130 years. While the group has already invested USD 1.7 billion in the country, this ₹39,618 crore commitment marks its largest single investment in India to date.

Hironori Kamezawa, Group CEO of MUFG, stated: “MUFG is proud to become a strategic partner of Shriram Finance. We share a common vision for the future, and we are committed to supporting SFL’s growth while contributing to India’s economic development.”

Umesh Revankar, Executive Vice Chairman of SFL, added: “This is a defining moment. MUFG’s entry reinforces global confidence in India’s financial sector. Together, we aim to build a future-ready institution anchored in trust and financial inclusion.”

About Author