• MUFG is close to acquiring around a 20 percent stake in Shriram Finance.
• Deal valued at over ¥500 billion ($3.2 billion), reflecting strong foreign interest in India’s financial sector.
• Shriram Finance focuses on commercial vehicle, tractor, passenger car, and SME lending.

Japanese banking giant Mitsubishi UFJ Financial Group (MUFG) is reportedly in advanced talks to acquire a minority stake in India’s Shriram Finance Ltd., in a deal that could exceed ¥500 billion ($3.2 billion). The investment would give MUFG roughly 20 percent ownership in the Mumbai-based financial services firm, though final details on stake size and pricing are yet to be confirmed.

Shriram Finance, with a market value of approximately $18 billion, has seen its shares rise nearly 50% this year. The company offers loans for commercial vehicles, tractors, passenger cars, and small and medium-sized enterprises across urban and rural India.

This potential deal highlights growing foreign investment in India’s rapidly expanding financial sector. Japanese banks have been actively increasing their presence, with Sumitomo Mitsui Financial Group earlier becoming the largest shareholder in Yes Bank Ltd., deploying almost $5 billion in India to expand lending and staffing.

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While negotiations between MUFG and Shriram are advanced, the agreement could still face changes or delays. Both companies have remained tight-lipped about the discussions. If finalized, this investment would further strengthen MUFG’s footprint in India and underscore global confidence in the country’s financial growth story.