MUFG Bank has entered into an investment agreement with Shriram Finance (SFL), the flagship company of the Shriram Group, and its major shareholders, Shriram Ownership Trust and Shriram Capital, to acquire 20% equity stake in SFL for ₹39,618 crore (~$4.4 billion) through a preferential issuance of equity shares.
After the completion of the transaction, Shriram Finance will become an equity method affiliate of MUFG and MUFG Bank.
As part of the arrangement, MUFG plans to appoint two directors to the board of Shriram Finance.
This collaboration combines SFL’s established domestic franchise and extensive distribution network with MUFG Bank’s global expertise and financial strength.
The fund infusion will significantly enhance SFL’s capital adequacy, strengthen its balance sheet, and provide long-term growth capital. This collaboration is further expected to unlock synergies in technology, innovation, and customer engagement, driving sustainable growth. It will improve access to low-cost liabilities and potentially strengthen SFL’s credit ratings while aligning governance and operational practices with global best practices.
In addition, MUFG Bank and Shriram Finance have signed an MoU for a strategic partnership that is intended to support the lender’s growth through closer collaboration between the two organisations.
This investment reflects MUFG Bank’s confidence in India’s dynamic financial services sector. Mitsubishi UFJ Financial Group (MUFG), MUFG Bank’s parent entity, has a legacy of over 130 years in India, contributing USD 1.7 billion in investments and creating approximately 5,000 jobs. The investment in SFL will be MUFG’s largest investment in India, reinforcing its commitment to financial inclusion and sustainable growth.
Umesh Revankar, Executive Vice Chairman, Shriram Finance, said, “This transaction marks a defining moment in our growth journey. MUFG is one of the largest financial institution, with an extensive international network and strong values rooted in substantial growth and financial inclusion. The entry of MUFG as a key investor reinforces global confidence in India’s financial services sector and our role as a leader within it. Together, we aim to strengthen our capabilities, drive economic progress, and create meaningful impact across communities, building a future-ready institution anchored in trust and good governance.”
Hironori Kamezawa, Group Chief Executive Officer, Mitsubishi UFJ Financial Group, said, “MUFG is proud to enter into this transaction and become a strategic partner of Shriram Finance, one of India’s most respected financial institutions. MUFG and Shriram Finance share a common vision and aligned values for the future. Leveraging our global capabilities, MUFG is committed to supporting Shriram Finance’s growth and contributing to economic development, communities, and society in India.”
