Archive · 19 Dec 2025
Japanese Banks Invest Billions in India's Financial Sector
Big banks from Japan are investing a lot of money in India's banks and financial companies.
They are doing this because their own country's economy is not growing much, and India's economy is growing fast.
Some of the big deals include Mizuho buying a big part of Avendus, SMBC investing in Yes Bank, and MUFG investing $4.4 billion for a part of Shriram Finance.
These Japanese banks think India is a good place to grow their business because more people are borrowing money, and the rules are getting clearer.
This is good for India because it brings more money and better ways of doing business.
But only a few Indian banks are in Japan, so it's mostly one-sided for now.
Japanese banks are investing heavily in India's financial sector due to limited growth in their domestic market.
Mizuho Financial Group acquired a controlling stake in Avendus for $523 million.
Sumitomo Mitsui Banking Corporation (SMBC) invested in Yes Bank, acquiring a 20% stake for $1.6 billion.
Mitsubishi UFJ Financial Group (MUFG) invested $4.4 billion for a 20% stake in Shriram Finance.
The Reserve Bank of India (RBI) allows foreign banks to hold up to 24.99% in Indian private banks without being classified as promoters.
- Who
- Japanese mega banks, including Mizuho Financial Group, Sumitomo Mitsui Banking Corporation (SMBC), and Mitsubishi UFJ Financial Group (MUFG)
- What
- Investing in India's banking and financial sector through acquisitions and partnerships
- When
- Recent deals in 2025, with ongoing talks and investments
- Where
- India, with a focus on major cities and financial hubs
- Why
- To seek higher-growth opportunities due to saturated domestic market in Japan and attractive growth prospects in India
- Mizuho Financial Group
- Acquired controlling stake in Avendus for $523 million
- Sumitomo Mitsui Banking Corporation (SMBC)
- Invested in Yes Bank, acquiring 20% stake for $1.6 billion
- Mitsubishi UFJ Financial Group (MUFG)
- Invested $4.4 billion for 20% stake in Shriram Finance
- SMBC Asia Rising Fund
- Acquired 4.99% stake in Shivalik Small Finance Bank
- Reserve Bank of India (RBI)
- Allows foreign banks to hold up to 24.99% in Indian private banks without being classified as promoters
- India's Growth Forecast
- 7.3% for 2025-26, up from 6.8%
- Indian Banks in Japan
- State Bank of India (SBI) and Bank of India (BOI) operate branches in Tokyo and Osaka
- Shriram Finance Share Price
- Surged nearly 2.82% in Friday’s trade, with a 52.9% gain year-to-date
Sources
Japanese mega banks are increasingly eying India’s banking and financial sector: What’s behind this interest?
Shriram Finance Board Meets Today: Is a massive $4 billion stake sale to MUFG on the cards?
Japan's MUFG to invest $4.4 billion for 20% stake in Shriram Finance
Shriram Finance approves massive Rs 39,618 crore fund raise; MUFG to buy 20% stake
Japan’s MUFG to buy 20% stake in Shriram Finance for $4.4 billion
Shriram Finance stock hits record high after Japan's MUFG buys 20% stake for Rs 39,618 cr
A list of major cross-border deals in India's financial sector this year
Piramal Finance exits Shriram Life Insurance, sells stake for Rs 600 crore
MUFG to acquire 20% stake in Shriram Finance for ₹39,618 crore
Historic $4.4 Billion FDI Bombshell: Japan's MUFG Bank Snaps Up 20% Stake In Shriram Finance
MUFG acquires 20 pc stake in Shriram Finance for nearly Rs 39,600 crore
