Archive · 31 Dec 2025
MUFG's Rs 39,600 crore investment in Shriram Finance
MUFG Bank, a Japanese bank, has invested Rs 39,618 crore in Shriram Finance to acquire a 20% stake.
This investment is expected to help Shriram Finance grow faster and improve its financial performance.
The article compares the financial metrics of Shriram Finance with Bajaj Finance, another major NBFC in India.
Bajaj Finance has shown stronger growth in loans, net interest income, and net profit compared to Shriram Finance.
However, Shriram Finance has a higher net profit growth rate over the longer term.
The investment by MUFG is expected to narrow the valuation gap between the two companies and improve Shriram Finance's profitability in the coming years.
MUFG Bank invested Rs 39,618 crore in Shriram Finance for a 20% stake.
Bajaj Finance has a higher market capitalization (Rs 6.16 lakh crore) compared to Shriram Finance (Rs 1.84 lakh crore).
Bajaj Finance's loans grew 24% y-o-y to Rs 4.62 lakh crore in Q2 FY26, while Shriram Finance's AUM grew 15.7% y-o-y to Rs 2.8 lakh crore.
Bajaj Finance's net profit grew 23.3% y-o-y to Rs 4,947.8 crore in Q2 FY26, compared to Shriram Finance's 11.5% y-o-y growth to Rs 2,314.2 crore.
MUFG's investment is expected to improve Shriram Finance's growth trajectory, reduce its cost of borrowing, and potentially narrow the valuation gap with Bajaj Finance.
- Who
- MUFG Bank, Bajaj Finance, Shriram Finance
- What
- MUFG Bank's investment in Shriram Finance and comparison of financial metrics between Bajaj Finance and Shriram Finance
- When
- Investment announced, data from Q2 FY26 and FY25
- Where
- India
- Why
- To analyze the impact of MUFG's investment on Shriram Finance and compare it with Bajaj Finance's performance
- Investment Amount
- Rs 39,618 crore ($4.4 billion)
- Investor
- MUFG Bank
- Stake Acquired
- 20% in Shriram Finance
- Bajaj Finance Market Cap
- Rs 6.16 lakh crore
- Shriram Finance Market Cap
- Rs 1.84 lakh crore
- Bajaj Finance P/B Ratio
- 6 times
- Shriram Finance P/B Ratio
- 3 times
- Bajaj Finance P/E Ratio
- 34 times
- Shriram Finance P/E Ratio
- 20.8 times
- Bajaj Finance Q2 Loans
- Rs 4.62 lakh crore (24% y-o-y growth)
- Shriram Finance Q2 AUM
- Rs 2.8 lakh crore (15.7% y-o-y growth)
- Bajaj Finance Q2 NII
- Rs 10,785 crore (22% y-o-y growth)
- Shriram Finance Q2 NIM
- 8.19% (down from 8.74% y-o-y)
- Bajaj Finance Q2 Net Profit
- Rs 4,947.8 crore (23.3% y-o-y growth)
- Shriram Finance Q2 Net Profit
- Rs 2,314.2 crore (11.5% y-o-y growth)
- Bajaj Finance FY25 Loan Growth
- 29.8% (FY23-FY25)
- Shriram Finance FY25 Loan Growth
- 19.2% (FY23-FY25)
- Bajaj Finance FY25 NII Growth
- 25.8% (FY23-FY25)
- Shriram Finance FY25 NII Growth
- 15.9% (FY23-FY25)
- Bajaj Finance ROE
- 19.2%
- Shriram Finance ROE
- 15.6%
