MUFG to Invest in Major Indian Nonbank Lender Shriram Finance

Tokyo, Dec. 19 (Jiji Press)–Mitsubishi UFJ Financial Group Inc. said Friday that it plans to invest some 396.2 billion Indian rupees, or about 682.3 billion yen, in major Indian nonbanking financial company Shriram Finance Ltd. The Japanese megabank group will acquire, through its key operating subsidiary MUFG Bank, a 20 pct equity stake in the Indian company and make it an equity-method affiliate, in a bid to bolster the group’s business base in the Indian market, which has strong growth potential. The investment is expected to be completed around March to May next year. MUFG Bank also signed a strategic partnership deal with Shriram Finance. The group plans to send two officials to the Indian firm to serve as directors. Shriram Finance was founded in 1979 and offers auto loans to small businesses and individual business owners in the transportation industry. It has around 3,200 locations across India, and is the second-largest nonbank lender in terms of outstanding loans. In the Indian market, Mitsubishi UFJ Financial Group in 2023 made an investment in another nonbank company, digital finance service provider DMI Finance Private Ltd. Earlier this year, Sumitomo Mitsui Financial Group Inc. acquired a 20 pct stake in Yes Bank, a major Indian commercial bank. Mizuho Financial Group Inc. announced on Wednesday the acquisition of leading Indian investment bank Avendus Capital Private Ltd. END [Copyright The Jiji Press, Ltd.]