MUFG Bank is a Tokyo-based global financial group with about 2,000 locations in over 40 markets, offering banking, securities, asset management, and more.

The lender emphasizes MSME and retail lending, planning to use the new capital to expand its loan portfolio, broaden rural and semi-urban reach, and seize opportunities in growth sectors.

Regulatory approvals were secured, including clearance from the Competition Commission of India, and the deal closed after all compliance checks.

SFL leadership reaffirmed that the alliance will provide cost-effective funding, bolster capital, and promote adoption of best practices in risk management and governance.

The collaboration is pitched as a milestone for both firms, reinforcing commitments to sustainable growth and financial inclusion in India.

Company leadership stated the partnership will enhance access to diverse and affordable funding, strengthen its capital base, and support long-term growth through better risk governance.

MUFG Bank of Japan acquired a 20% equity stake in Shriram Finance Ltd (SFL) for ₹39,618 crore, marking the largest cross-border investment into India's financial services sector.

The transaction originated last December when MUFG agreed to take a minority stake in SFL, and the deal has now been completed.

Shriram Finance is India's second-largest retail NBFC, with assets under management exceeding ₹2.91 trillion and a diverse product mix across 3,225 branches.

Shriram Finance reported standalone net profit of ₹2,521.67 crore for Q3 FY26, down 29.36% year-on-year, with total income of ₹12,191.58 crore, down 1.38% from the prior year.

SFL’s Executive Vice Chairman Umesh Revankar highlighted benefits including diversified funding, innovation, and improved risk management and governance.