SBI, MUFG Forge Strategic Partnership to Finance Global Deals

Japan’s Mitsubishi UFJ Financial Group (MUFG) and the State Bank of India (SBI) on Wednesday announced a strategic partnership aimed at structuring and financing projects for Indian and global clients, including mergers and acquisitions (M&A) and real estate financing. The collaboration comes after India’s central bank introduced new reforms allowing domestic lenders to finance corporate acquisitions, permitting funding of up to 75% of a deal’s value for both listed and unlisted companies.

The revised rules, which will come into effect from April 1, also allow banks to fund acquisitions up to 20% of their eligible capital base. These regulatory changes are expected to create fresh credit growth opportunities for Indian lenders and strengthen the country’s M&A financing ecosystem. Under the alliance, SBI’s extensive domestic reach and market leadership will be combined with MUFG’s global network and cross-border structuring expertise.

The partnership will focus on supporting Japanese corporations expanding in India as well as Indian businesses pursuing international growth, including entry into Japan and other global markets. It will also cover M&A advisory, trade finance, and retail banking solutions, while helping connect Indian mid-corporates and MSMEs with Japanese corporate clients. MUFG has previously backed major deals in India, including Tata Motors’ €3.8 billion acquisition of Iveco Group and Schneider Electric’s €5.5 billion stake purchase in its Indian joint venture from Temasek Holdings.

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