Japan’s Mitsubishi UFJ Financial Group’s consolidated subsidiary MUFG Bank has signed an investment agreement with India’s non-banking financial company (NBFC) Shriram Finance to subscribe to a preferential allotment of 20% equity shares in Shriram Finance. The total investment, valued at around Rs396.2bn (about $4.3bn), is subject to regulatory approval. The investment agreement was reached between MUFG Bank, Shriram Finance, and its major shareholders, Shriram Ownership Trust and Shriram Capital Priva ...

Core Insights - India's industry, trade, and commerce are experiencing a significant shift in credit sourcing, with non-traditional funding sources gaining prominence amid a GDP growth averaging around 8% over the past few years [1][5]. Credit Flow Trends - The flow of bank credit in FY25 decreased by approximately ₹3.4 lakh crore, dropping from ₹21.4 lakh crore to ₹18 lakh crore, while non-bank sources compensated for this decline with an increase of ₹4.3 lakh crore, rising from ₹12.5 lakh crore in FY24 to ₹16.8 lakh crore in FY25 [2][4]. - In FY26 (up to October 31), the total flow of financial resources to the commercial sector increased to ₹20.1 lakh crore from ₹16.2 lakh crore a year ago, with non-bank sources contributing ₹8,95,813 crore, marking a 39% year-on-year increase [13]. Non-Bank Financing Sources - Non-bank financing sources include commercial papers, corporate bonds, private equity, venture capital, credit from non-banking financial companies (NBFCs), external commercial borrowings (ECBs), and foreign direct investments (FDI) [6]. - In FY25, corporate bond issuances reached ₹9.9 lakh crore, a 16.1% increase from the previous year, while investments from alternative investment funds (AIFs) grew by 32% year-on-year to ₹5,38,161 crore as of March-end 2025 [20]. Structural Changes in Financing - The shift towards non-bank financing is driven by India's rapid economic expansion and formalization, which have increased corporate financing needs, while banks face exposure limits and tighter lending norms [18]. - Companies are increasingly seeking non-bank capital as it offers faster execution, higher ticket sizes, and capital aligned with long-term growth rather than short-term debt servicing [19]. Regulatory Environment - The RBI and SEBI are encouraging diversification of corporate funding by deepening the corporate bond market and enhancing supervision of NBFCs, which reflects a regulatory nudge towards non-bank financing [21][22]. - The upcoming withdrawal of guidelines that limited bank credit to large borrowers is expected to allow banks to increase their lending to corporations, potentially balancing the shift towards non-bank sources [24][25].

Leading non-banking financial company (NBFC) Shriram Finance on Friday said Japan-based MUFG Bank would invest Rs 39,618 crore, or $4.4 billion, to acquire a 20 per cent stake on a fully diluted basis through a preferential issue of equity shares.Illustration: Uttam GhoshThis will be the largest foreign direct investment (FDI) ever in India’s financial services sector, which has seen a spate of large deals this year.The transaction will surpass Emirates NBD’s October deal to acquire a 60 per cent stake in R ...

MUMBAI: Mitsubishi UFJ Financial Group (MUFG) is set to invest ₹39,618 crore ($4.4 billion) for a 20% stake in Shriram Finance Ltd, marking one of the largest cross-border transactions this year and adding to the growing pipeline of deals in the India-Japan corridor.The investment will be made through a preferential issuance of equity shares, Shriram Finance (SFL) said in a filing with the stock exchanges on Friday.The fund infusion will enhance SFL’s capital adequacy, strengthen its balance sheet, and prov ...

Loan-against-property lender Optimo Capital has raised $17.5 million in a new round of funding led by the startup's founder Prashant Pitti with participation from existing investors Blume Ventures and impact venture capital firm Omnivore. Alongside the equity raise, the non-banking financial company, or NBFC, has also raised just under $12.5 million in debt from IDFC Bank and Axis Bank. With the new round, Optimo's total equity fundraising stands at $27.5 million. The Blume-backed company targets medium a ...

Core Insights - A gold loan is a financial product where individuals can borrow money against their gold jewelry, with the amount determined by the purity and weight of the gold [1][5] Interest Rates - As of October 2025, interest rates for gold loans vary across different banks and financial institutions in India, with public sector banks offering rates from 8.35% to 10.50%, while private sector banks range from 9.00% to 10.50% [1] Acceptable Gold Items - Only gold ornaments with a purity of 18 to 22 karats and bank-minted coins (24 karats) up to 50 grams per customer are acceptable for gold loans [2][5] - Items such as gold-plated jewelry, imitation jewelry, and gold bars are not accepted by reputable lenders [4][5] Loan Amount Determination - The loan amount is based on the purity of gold (measured in karats) and net weight, with loans not offered against primary gold (24-carat gold bars and biscuits) [5][4] Repayment Options - Various repayment options are available, including EMI-based repayment, bullet repayment for 3, 6, and 12 months, and an overdraft facility [6]

Core Insights - JSW One Platforms announced a ₹575-crore fundraise aimed at underwriting more inventory loans and growing its loan book five times to ₹500 crore by the end of this year [1][3] Fund Utilization - Approximately half of the raised capital will be allocated to capitalize its in-house non-banking financial company (NBFC), JSW One Finance Limited, while the remainder will be used to scale up JSW One Platforms and expand distribution channels [2] Loan Disbursement - Over a third of orders on JSW One Platforms utilize credit, resulting in monthly disbursals of ₹475-500 crore in 60-90-day inventory funding loans, primarily underwritten by partner banks and NBFCs [3] Investment and Valuation - The ₹575 crore was raised from various investors, including the State Bank of India and Principal Asset Management, with a cumulative equity raise of ₹1,120 crore, and a valuation of $1 billion during a previous round in May [4] Role in MSME Financing - The growing NBFC arm is expected to play a crucial role in bridging the working capital gap for micro, small, and medium enterprises (MSMEs) [5] Business Model - JSW One Platforms operates as a full-stack solution provider for MSMEs in manufacturing and construction, with 82% of its e-commerce business derived from manufacturing [6] Gross Merchandise Value (GMV) - The company reported a GMV of ₹12,567 crore in FY25, a 240% increase from the previous year, and anticipates surpassing ₹8,000 crore in GMV in the first half of FY26, reflecting a 50% growth [7] Future Plans - The company aims to break even by the end of the current financial year and plans to go public by FY28 [7] Industry Context - JSW One Platforms is part of a growing cohort of conglomerate-led B2B e-commerce platforms, alongside ventures from Aditya Birla Group, Larsen & Toubro, and Tata Group [8]

Core Insights - Banks and shadow banks are launching various offers to boost credit demand during the festive season, which has been relatively muted this year [2] - Lenders are reducing interest rates on loans for homes, vehicles, and personal use, while waiving processing fees and extending repayment tenures [2] Group 1: Offers and Discounts - Many banks have partnered with retailers and e-commerce companies to provide 'instant' EMI options, cashback deals, and discounts on purchases [3] - ICICI Bank is offering savings of up to ₹50,000 on transactions made through credit or debit cards, internet banking, and cardless EMI [4] - HDFC Bank is providing 'festive treats' with savings of up to ₹50,000 on various loans, including personal, business, and vehicle loans [5] - Axis Bank has launched 'Dil Se Open Celebrations' to offer discounts, cashback, and exclusive deals for upcoming festivals [6] Group 2: Specific Offers by Banks - State Bank of India is providing a 10% instant discount on credit card purchases made during Amazon's 'Great Indian Festival' sale [7] - Non-banking financial companies (NBFCs) are focusing on two-wheeler loans following a GST cut, targeting demand in Tier-II and Tier-III cities [8] - Shriram Finance plans to introduce schemes for gold, housing, and vehicle loans to capitalize on festival demand [9] - L&T Finance has announced three festival schemes for two-wheeler customers, including no-cost EMI and prompt payment rebates [10] Group 3: Market Trends - There is a noticeable increase in demand within the auto ecosystem, particularly for two-wheelers, three-wheelers, and passenger vehicles [9] - The overall sentiment indicates a steady underlying demand for credit, with expectations of increased borrowing across key segments due to GST rationalization [8]