Mitsubishi UFJ Financial Group Inc. is in advanced talks to acquire a minority stake in India’s Shriram Finance Ltd as per news reports, underscoring growing foreign interest in the world’s most populous market.
The Japanese banking giant may invest more than ¥500 billion ($3.2 billion) to purchase roughly a 20% stake. Negotiations are said to be well progressed, with a deal potentially being finalised as soon as this week, though key details such as valuation and stake size could still change.
Japan’s largest lenders are steadily expanding their presence in India, betting on the country’s long-term economic growth. Earlier this year, Sumitomo Mitsui Financial Group Inc. became the largest shareholder in Yes Bank Ltd. in a landmark transaction and has since deployed nearly $5 billion to expand lending and staffing in the country.
Shriram Finance operates across both urban and rural India, with a strong emphasis on financing commercial vehicles, tractors, and passenger cars. The company also provides credit to small and medium-sized enterprises.
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The company reported a strong improvement in its financial performance, with revenue from operations rising to ₹46.5 million in Q2 FY26, compared with ₹8.5 million in Q2 FY25. Profit after tax (PAT), including the subsidiary and its associate, increased to ₹24.5 million in Q2 FY26 from ₹15.2 million a year earlier. For the first half of the year, PAT stood at ₹22.4 million in H1 FY26, compared with ₹25.7 million in H1 FY25.
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Published on: Dec 16, 2025, 10:06 AM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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