Mumbai: In a resounding vote of confidence for India’s booming growth narrative, Japan’s Mitsubishi UFJ Financial Group (MUFG) has announced a massive investment of around Rs 40,000 crore (approximately $4.5 billion) to acquire a 20 per cent stake in Shriram Finance Limited.
This landmark deal marks the largest strategic infusion by a foreign lender into India’s non-banking financial company (NBFC) sector, underscoring the allure of the country’s financial landscape.
The transaction highlights how global players are betting big on India’s untapped potential, where access to financial services remains significantly lower than international benchmarks, offering vast room for expansion.
Japanese institutions, renowned for their patient, long-term approach, are particularly optimistic about the nation’s robust economy and well-regulated system.
Former HDFC Vice Chairman and CEO Keki Mistry hailed the move as a “good sign” for India, stating that it bolsters foreign investors’ trust in the regulatory environment and abundant growth opportunities. “India’s financial sector is quite attractive… the reach of any financial service product is still less compared to global levels,” he noted, adding that finance forms the critical foundation for sustaining economic momentum.
Mistry expressed no worries about increased foreign inflows, emphasising the strength of domestic savings and oversight.
With foreign ownership caps at 74 percent in banks — potentially relaxing to 100 percent without diluting control — this deal signals more such investments on the horizon, reinforcing India’s position as a magnet for global capital.