The Competition Commission of India (CCI) has approved MUFG Bank’s proposed acquisition of a stake in Shriram Finance, paving the way for one of the largest foreign investments in India’s financial services sector.

The deal, valued at ₹39,618 crore (approximately $4.4 billion), involves MUFG Bank acquiring a 20% stake in Shriram Finance through a preferential share issuance. It is widely regarded as the largest foreign direct investment (FDI) in India’s financial sector to date, highlighting growing global confidence in the country’s credit and lending ecosystem.

Key Highlights

• CCI clears MUFG’s ₹39,618 crore investment in Shriram Finance, largest FDI in financial sector.
• Deal strengthens NBFC sector with global capital, boosting lending capacity and financial inclusion growth.

MUFG Bank, part of Mitsubishi UFJ Financial Group, aims to strengthen its presence in India’s fast-growing retail and MSME lending markets through this strategic investment. Meanwhile, Shriram Finance—classified as an upper-layer NBFC—will benefit from enhanced capital adequacy, improved access to global funding, and long-term growth capital.

The partnership is expected to unlock synergies in areas such as technology, risk management, and customer engagement, while aligning Shriram Finance with global best practices. Industry experts believe the deal underscores India’s rising attractiveness as a destination for large-scale financial investments amid strong domestic demand and credit expansion.

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With regulatory approval now secured, the transaction marks a significant milestone in India–Japan financial cooperation and sets the stage for further cross-border investments in the sector.